Umberella companies/Contracting help please

Discussion in 'General Chat' started by hornydragon, Aug 11, 2006.

  1. hornydragon

    hornydragon
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    ANyone use an Umberella company? Any good ones? How much risk is there in IR35. Any help on contracting appreciated. I am bit overwhelmed by whats on offer and whats worth having or not.

    BTW its for a 3 month contract.
     
  2. DJT75

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  3. Beobloke

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    Frankly i wouldn't get too tied up in the detailing - just look for a good sturdy item that is well made, keeps the water off and has some sort of resistance to turning inside out in windy weather. A golf umbrella is very good from a protection point of view, but will be harder to control in wind and does increase the risk of poking someone's eye out if you're using it in a busy area.
    Not sure i've ever seen umbrellas available on contract but, to be honest, when you can buy one for only a few pounds, it's probably just as economical to buy one outright for the 3 month duration - you could always pop it on Ebay at the end and get some of your initial outlay back.
     
  4. Kazman

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    I'll pm you the details of the one I use. VERY reliable :)
     
  5. pave

    pave
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    Made me laugh......:thumbsup: :rotfl:
     
  6. Ultraviolet

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    Not sure umbrella companies offer any additional protection in terms of IR35, since this is assessed on how you actually work, rather than how the proceeds are channelled. Far more important is to make sure your contract is IR35 compliant, and get some insurance. The Revenue seems to be losing most of its cases from what I have heard, so I wouldn't be overly concerned.

    UV
     
  7. Kazman

    Kazman
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    Many companies that provide Brolly services are IR35 compliant now-a-days, the one I use certainly is :).

    So much so that I REALLY hate the tax man each month :D
     
  8. Mr_Wistles

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    1stcontact.co.uk

    Predominantly designed for overseas people but I used them for three years, flawless service and an extra 13% on your money plus expenses, lovely.

    If you go with them I will give you my referral code and we can split the money they give me.
     
  9. Ultima

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  10. Ultraviolet

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  11. misterjingo

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    Double check how much you would take home from the umberella company first. I'm currently contracting and looked into such companies, due to the fact I wouldn't be claiming travel (I live close to the job), I would actually be £20-30 a week down. So i'm currently on the payroll of the contracting firm who got me the job. It's a bit of hastle for them, but they're making plenty off me, so they don't mind.
     
  12. Mr_Wistles

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    I cannot see how you would be down working for a ltd company vs PAYE.
     
  13. misterjingo

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    Because you have to pay the umberella company. The ones I checked out were around the £20 a week mark. Also, I can't claim on travel, food, calls etc. The firms were also taking 2-4% pay each week to cover sick pay/holidays etc. So I would have been down a fair bit. The umberella company themselves looked at the figures and told me this, the contracting firm double checked and agreed, allowing me to go through their payroll.

    Edit: If I had to travel into work it might have been a bit different, but its a 10 minute walk for me.
     
  14. Mr_Wistles

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  15. Ultima

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  16. misterjingo

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    Using that calculator thing, is the right hand column what I would be getting with 1stcontact? I'm not going to name the umberella company who quoted me (They were suggested by the contracting firm), but it was less than paye. Would the fact i'm on a rolling monthly contract affect anything?
     
  17. Mr_Wistles

    Mr_Wistles
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    Not sure what you mean?
     
  18. Mr_Wistles

    Mr_Wistles
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    Thats right.

    The contracting firm were probably getting another percentage from the umbrella company, you can usually haggle the percentage down also, especially if you have a good hourly/daily rate.
     
  19. misterjingo

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    Clicking the link you supplied, there was a salary calculator, it required hours work, hourly pay, and expected length of contractor. The table has two columns: PAYE, and 1st Contact Tax Product. It suggests from my details I would be on £100 more a week than I am currently picking up - that seems a pretty big hike considering what the other umberella company quoted me.

    Edit: I'm currently on £17 an hour.
     
  20. Mr_Wistles

    Mr_Wistles
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    I was actually replying to Martin.

    So £17 an hour with your national insurance back equates to (12.8%) - £19.17 per hour.

    This is where you thank me :thumbsup:
     
  21. misterjingo

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    Thanks :D

    This is something i'm going to look into. So I need to incorporate myself and get a IR35 friendly form from my agency? Do I have to take care of my tax etc reports to companies house? To be honest, I wouldn't know where to start - but i'd like to :D.
     
  22. Mr_Wistles

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    Call them up and tell them what you want to do, they will handle everything.

    Tell your agency that you want to work for your own ltd company and they will give you a different type of contract, forward the contract to 1st contact and bobs your uncle.

    The only extra work you have to do is submit two timesheets, send one to the agency and one to first contact. The agency will pay first contact and then first contact will pay you (two days later)
     
  23. misterjingo

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    Thanks a lot for all the help! It's definately appreciated. I'm quite shocked that my agency kept all this from me, quoting me a lot less than I could be earning.
     
  24. shahedz

    shahedz
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    if you're earning £17 per hour that eqautes to £35,360 per year based on a 40 hour a week over 52 weeks,

    therefore if you do a breakdown of PAYE as opposed to working via a contractor i do not think its beneficial really. as you barely go into the 40% tax bracket anyway, i would ask an accountant to do a like for like comparison and you will see its really not that beneficial for you at that rate. I know many doctors ( i used to run a recrutiment agency for doctors) who worked via a contractor but they were on £30- £75 per hour so in that case it was very much so.
     
  25. Mr_Wistles

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    A final thing that you need to check is whether the company you are working for will let you work for a ltd company. Some don't as they feel it is unfair on their permanent members of staff as you end up earning a lot more than them.

    I am in the shocking situation of going PAYE from LTD and you would not believe the amount of tax I have paid this week. I worked it out that from Wednesday every hour I work I only get half of it as the rest goes to the taxman.
     
  26. Ultima

    Ultima
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    Russell, just so I am clear on this, do you work for 1stcontact, do they get you work, or do they just deal with receiving funds and paying the funds to you, presumably taking their cut? Also, who pays you the expenses?

    Sorry for the questions but I think I am missing something about your relationship with 1stcontact.

    Martin

    EDIT: Oh, and how do they get paid for the work they do for you?
     
  27. Mr_Wistles

    Mr_Wistles
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    I agree that his rate is not ideally suited for Ltd company but he can definitely make a bit extra.
     
  28. Mr_Wistles

    Mr_Wistles
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    I am just leaving, I will explain it when I get home.
     
  29. shahedz

    shahedz
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    found the below on an old website so not sure how accurate it is

    Personal Allowance First £4,895 Tax Free
    Lower Rate £0 - £2,090.00 10%
    Basic Rate £2,091 - 32,400.00 22%
    Higher Rate £32,400.01 + 40%


    so as you can say getting a divedend paid at 19% to you , with all the comission and fees you pay a contracting company isn't that beneficial
     
  30. shahedz

    shahedz
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    but the extra he could potnetially make would get swallowed in the fees charged by the 1st contact or whoever , its not really worth it in my opinion
     

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