Umbrella companies

robson_kite

I've recently undertaken a freelance contract for 2 months. Rather than sort the tax myself I was advised that I should use an umbrella company as it was only for a short time.

When I signed up with an umbrella company I was told that they would charge £28 per week which I thought was fine.

They've now taken £112 for the last month plus a further £208 for employee costs e.g. pension etc.

I had no idea they were going to take these costs as well so I wouldn't have agreed to work with them if I'd known.

Does this sound right? If I'd known I would have sorted the tax myself as I'm losing £80 a week which is a lot when the pay is quite low.

Any advice would be much appreciated. Can I get these costs back?

isplumm

robson_kite wrote: »

I've recently undertaken a freelance contract for 2 months. Rather than sort the tax myself I was advised that I should use an umbrella company as it was only for a short time.

When I signed up with an umbrella company I was told that they would charge £28 per week which I thought was fine.

They've now taken £112 for the last month plus a further £208 for employee costs e.g. pension etc.

I had no idea they were going to take these costs as well so I wouldn't have agreed to work with them if I'd known.

Does this sound right? If I'd known I would have sorted the tax myself as I'm losing £80 a week which is a lot when the pay is quite low.

Any advice would be much appreciated. Can I get these costs back?

Well it is a bit difficult, as you don't say how much you are getting paid per month - but I suspect it is correct.

Did you not do any research on umbrella companies? Read http://www.sjdaccountancy.com/about/ourservices/ltd_vs_umbrella.html?gclid=CjwKEAiAmeyxBRCJxoKk7IWLl2oSJABvZjhhanC-lL0kDajdMlwQLdDRSHdu5ix6qDa60lagTMW6DRoCn4_w_wcB

You might be able to claim back the pension - not sure - also is there any holiday there - have you claimed any expenses?

Remember that you are an employee of the umbrella company - who are they?

Mark