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askhnking
27th May 2010, 10:59
I am new to contracting I was advised to check how many payrolls umbrella company runs ..

How does it matter to me ?

Does this mean that if my umbrella runs 1 payroll a week on Mondays, if agent pays umbrella Tuesday, I need to wait until next Monday to get my payment ??

Does it also means, if I need any change on already issued payslip on Tuesday, I need to wait one week?

LisaContractorUmbrella
27th May 2010, 14:38
Your understanding is correct; if your umbrella company runs one payroll a week you will be paid on that day - if payment is made by BACs you must be aware that the payment can take 2 to 3 days to arrive in your bank account. You should also check deadlines i.e. when funds will need to be received by the umbrella company for you to be included in the pay run.

askhnking
27th May 2010, 15:16
Thanks a lot for clarifying. Does it also affect any corrections I need on payslip ?
cant this be done without waiting untill next run?

Ideally I should consider umbrella with daily payroll runs ?

LisaContractorUmbrella
28th May 2010, 09:01
Thanks a lot for clarifying. Does it also affect any corrections I need on payslip ?
cant this be done without waiting untill next run?

Ideally I should consider umbrella with daily payroll runs ?

What do you mean by correction askhnking? There shouldn't be any need as long as the payroll has been done correctly in the first place - could you clarify?

Steven@Parasol
28th May 2010, 10:28
There are some really good independent umbrella guides out there you might find useful. I've linked to one of the strongest below. It includes a list of questions you should think about asking potential umbrellas before you sign up with them and includes a couple of points on frequency of payment as these can vary.

For example, we run four payrolls everyday.

Good luck with the search

Lisa is spot on re corrections.

LisaContractorUmbrella
28th May 2010, 10:45
Interesting checklist - the only issue I have with it is that it doesn't tell the contractor what would be a good answer and what would not; I suppose the information is available somewhere else on the site but that's not a lot of help if you have navigated away from the site.

With regard to 'independent' umbrella guides - you need to be very careful. Many of the guides will favour advertisers and some include ridiculous criteria when scoring such as '% Take Home Pay' which should be the same whichever company you use other than their fees

Steven@Parasol
28th May 2010, 12:32
Interesting checklist - the only issue I have with it is that it doesn't tell the contractor what would be a good answer and what would not; I suppose the information is available somewhere else on the site but that's not a lot of help if you have navigated away from the site.

With regard to 'independent' umbrella guides - you need to be very careful. Many of the guides will favour advertisers and some include ridiculous criteria when scoring such as '% Take Home Pay' which should be the same whichever company you use other than their fees

Agree with Lisa again. However as a provider, its not for me to comment on what a good answer would be as i'm not impartial. What it does do though is help make a comparrison by asking for the same info from the providers you contact so you can make an informed decisions. Some of the questions will help to identify unscrupulous practises by some providers as well.

As lisa says, per centage take home pay should be the same whichever company you work with. If an offer sounds too good to be true, it usually is.

askhnking
31st May 2010, 12:35
What do you mean by correction askhnking? There shouldn't be any need as long as the payroll has been done correctly in the first place - could you clarify?

Thanks.

Suppose if I forgot to claim some expense this week.. I do not want to wait untill next payroll run to get this sorted. does such corrections depend on how many payrolls a company run ?

askhnking
31st May 2010, 12:45
Thanks a lot for the checklist. Thanks for confirming that net pay does not vary between companies. I was thinking alll companies have to work with same tax laws.. how can one offer more than other ?

But I think level of expenses I calim depend on which company I choose. I got a call from one sales man, he told me even though they charge more, I can claim more expenses with them.

LisaContractorUmbrella
1st June 2010, 08:14
Thanks a lot for the checklist. Thanks for confirming that net pay does not vary between companies. I was thinking alll companies have to work with same tax laws.. how can one offer more than other ?

But I think level of expenses I calim depend on which company I choose. I got a call from one sales man, he told me even though they charge more, I can claim more expenses with them.

Hi Ashhnking,

This is definitely untrue - HMR&C determine what can be claimed as an expense and what cannot, not the umbrella company. Apart from anything else you can only claim for what you have spent so how could this company change that fact and promise you more? Please be very wary - if you are not sure and getting lots of conflicting advice I would encourage you to telephone HMR&C and ask them to confirm.

original PM
2nd June 2010, 12:47
Agree with Lisa again. However as a provider, its not for me to comment on what a good answer would be as i'm not impartial. What it does do though is help make a comparrison by asking for the same info from the providers you contact so you can make an informed decisions. Some of the questions will help to identify unscrupulous practises by some providers as well.

As lisa says, per centage take home pay should be the same whichever company you work with. If an offer sounds too good to be true, it usually is.

But on your website the basic calculator seems to take into account some expenses but there seems to be very little information surrounding exactly how you have come to that figure.....

If you make the assumption that you will only claim expenses which you have incurred and which are allowed by HMRC then all Umbrella Companies will offer the same return regardless of what their calculators say.

The only monetary difference will be the Fee's which the Umbrella Company charge.

Obviously the ability of the umbrella company to pay you at the agreed time and pay you the correct amount is often of more importance.