Is my umbrella taking the Pi**

[Learned Hand]

On my first contract. New to all this stuff. My hourly rate is £38per hour. Just had a pay slip for two weeks at 37.5 hours per week. Total paid by agency to umbrella was £2,850. My total pay was £1670.

It doesn't seem right. Out of the £2,850 came agency admin at £49, employer's NI at £302, (a voluntary holiday amount £32) tax at £710 and employee National Insurance at £80.

The umbrella say they have to pay the employer national insurance. If that is the case does about 10% seem right?

Is there anyone else out there who earns the same sort of rate but gets much more? I haven't submitted any expense yet but I do not see how they can make much difference as it would only be some food and a small bit of travel. (tube pass)

Thanks for any info or advice.

[Epiphone]

The umbrella say they have to pay the employer national insurance. If that is the case does about 10% seem right?

Yes. I thought emplyers NI was 11% but I can't do maths. You'll pay income tax, employees NI and employers NI. The latter because someone has to pay it and it's sure as tulip not going to be the brolly.

[sidknows]

go limited as if you are under an umbrella -- you pay both types of ni ===

which consultant ie agency recommended you to go for an umbrella as at the rate , your own limited would be a better option

[VectraMan]

Sounds right to me (12.8% for employer's NI). The umbrella isn't taking the piss, they're just applying the government mandated rate of tax. Whether the government is taking the piss is another matter.

With a Ltd. you should be able to keep > £4000 per month, IR35 notwithstanding.

[malvolio]

Ermm - point of order. If you're travelling by tube, you're presumably on a dailuy commute. So how come you can claim for food? (actually I think I know, but I'm wondering if you do.)

Not a silly question either, since HMRC are starting to look at umbrella-funded expenses...

[sathyaram_s]

Total paid by agency to umbrella was £2,850. My total pay was £1670.

It doesn't seem right.

Seems right, based on

http://www.contractorumbrella.com/calculator.html

[moorfield]

Welcome to the world of IR35. It's only "fair".

[TheFaQQer]

Welcome to the world of IR35. It's only "fair".

Nope - this is welcome to the world of being an employee. It's your choice.

Nothing to do with IR35, more to do with not wanting / being able to run a business.

[em:two]

Having used brolly's before I'd recommend going with you're own Ltd company.

Gives you alot more control and if you find a decent accountant then you can do well and still pay everything you should do.

[Cooperinliverp00l]

go limited as if you are under an umbrella -- you pay both types of ni ===

Do you not pay both types of Ni under a LTD co then !!! i thought you did.