Umbrella pay

Matt_22

What does it mean when a job offers an hourly rate. Umbrella

General_Grant

Matt_22 said:

What does it mean when a job offers an hourly rate. Umbrella

The people offering the work will not employ you direct.  They will pay that hourly rate for worked hours invoiced - to the the umbrella company who will make deductions (including for their own profit/work).  I think this still includes the apprentice levy as well as tax and NI etc.

Matt_22

So the hourly rate offerd. May not be the rate I get?

Grumpy_chap

The simplest thing to do is to speak with one of the Umbrella Companies that the Client will work with and ask for an illustration.

In most cases, the only significant scope to mitigate taxation costs will be Salary Sacrifice pension contributions.  If that is something you might consider, ask the UC how they administer that 

DullGreyGuy

Matt_22 said:

What does it mean when a job offers an hourly rate. Umbrella

You will be the employee of an umbrella company. Typically the hourly rate will be the rate that the Umbrella company is paid not you, the umbrella will deduct a weekly fee and all the employer costs (eg Employers NI) and the remainder is paid to you.

As its an all in amount of money you can either have holiday pay and take home less on a daily basis or choose to get your holiday paid as its accrued so more money whilst working but unpaid leave. There will be no sickness policy, no employers pension or benefits (unless you want to pay for them etc). 

You're as close to self employed as possible whilst still being an employee