sorry ;( need help

[sleepyweasel]

Please don't think that I haven't tried to do my own research, oh lord how I have tried!!
I see there is websites with the top 100 umbrellas, which gives you a comparison of monthly fee, and % returned to you, but they don't seem to always add up when I go onto their site and use their calculator, so I'm afraid I need a little assistance.
Basically, why I think my situation is different from the norm is that I haven't worked so far this tax year, I'll soon be starting a contract and the gross income I get this tax year will probably only be about the tax-free allowance in the normal tax code which I think is about 6.5k SO ... given that I'm really not going to be paying any tax this year, should I just be focusing on the monthly fee that the umbrella charges me and nothing else? My only expenses will be a 25 quid travelcard each week. and my agency only does payroll once a month.
Is my thinking correct? it looks like Bbuffalo has the lowest monthly fee, but their calculator gave me a terrible net income! argh.

argh!

[SueEllen]

The best way is to go limited.

All umbrella companies calculators tend to be flawed as they make up the expenses you will be claiming making it look like you will get a large income.

All you can really claim in your case is your travelcard fee then all other income is subject to tax, employers NI and employees NI.

So I suggest you look for an umbrella who others state will pay you all your money with no problems.

[Moscow Mule]

It sounds like you're only getting temp wages (£6k in the next 4/5 months) so I would try and go on the agents PAYE books if at all possible.

It's not going to cost you any more tax this year and will save on your start up/running costs.

[Gonzo]

All other things being equal, and they are, the only differences between the different umbrella companies are their fees.

OK, that's an oversimplification. You do need to consider their payment terms and how likely they are to go bust owing you money, but their fees are the primary difference.

The advice in this sticky is as valid now as it was when it was written.
http://forums.contractoruk.com/accou...fraid-ask.html

[LisaContractorUmbrella]

Please don't think that I haven't tried to do my own research, oh lord how I have tried!!
I see there is websites with the top 100 umbrellas, which gives you a comparison of monthly fee, and % returned to you, but they don't seem to always add up when I go onto their site and use their calculator, so I'm afraid I need a little assistance.
Basically, why I think my situation is different from the norm is that I haven't worked so far this tax year, I'll soon be starting a contract and the gross income I get this tax year will probably only be about the tax-free allowance in the normal tax code which I think is about 6.5k SO ... given that I'm really not going to be paying any tax this year, should I just be focusing on the monthly fee that the umbrella charges me and nothing else? My only expenses will be a 25 quid travelcard each week. and my agency only does payroll once a month.
Is my thinking correct? it looks like Bbuffalo has the lowest monthly fee, but their calculator gave me a terrible net income! argh.

argh!

Firstly I would disregard any website that ranks umbrella companies based on their net return to you. ALL umbrella's have to work in the same way as we are all governed by HMR&C - payments are made through PAYE and you can only claim, as expenses, costs that you have personally incurred that would be allowable as an expense by HMR&C. The ONLY difference should be the fees they charge.

HTH

[sleepyweasel]

thanks guys this is the answer i was looking for, and what i had suspected. Bbuffalo looks reputable, the cheapest, and all managed online so that'll do me fine

cheers

[MarkOD]

i looked at them due to the price, but it's literally ALL online, sometimes i want to speak to a human being!

[sleepyweasel]

i looked at them due to the price, but it's literally ALL online, sometimes i want to speak to a human being!

really? and you work in IT?

[ilovehr]

Read the small print...

thanks guys this is the answer i was looking for, and what i had suspected. Bbuffalo looks reputable, the cheapest, and all managed online so that'll do me fine

cheers

Bbuffalo don't give tax relief at source, you get a rebate annually which they will kindly help you with by doing your tax return and charging you for the priviledge....

I think if I were staying with an umbrella, I'd rather have the tax relief at source - it's better for cash flow.

Don't forget, "there are many good and services that a company can make a little worse and sell a little cheaper and those that consider price only are this company's legal prey"...can't remember where I heard that but i think it means you get what you pay for.....

[ldoughty]

Did you go with Bbuffalo?

Did you go with Bbuffalo?