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srk
3rd September 2011, 23:39
Thinking of becoming a contractor, is it true that a contractor working for a umbrella company has to pay employers N.I from their own pay.
In this case is it that as a contractor whose 24 month period has exceeded and is termed as a permanent employee takes home less net pay then a normal permanent member of staff if the rate of pay is the same.




Thank you

malvolio
4th September 2011, 10:34
Thinking of becoming a contractor, is it true that a contractor working for a umbrella company has to pay employers N.I from their own pay.
In this case is it that as a contractor whose 24 month period has exceeded and is termed as a permanent employee takes home less net pay then a normal permanent member of staff if the rate of pay is the same.




Thank you
There is so much wrong with that question, I don't know where to start. :laugh

Read the guides we keep telling people to read and try again.

But briefly, "Yes" and "Don't be silly".

srk
4th September 2011, 16:37
Any links to the guides would be appreciated.

Waldorf
4th September 2011, 21:56
These may be a place to start?

Nixon Williams - Brochures & Guides (http://www.nixonwilliams.com/page/110/Brochures-and-Guides.htm)

Nixon Williams - Take Home Pay Calculator (http://www.nixonwilliams.com/net_pay_calculator.asp)

malvolio
4th September 2011, 22:16
Any links to the guides would be appreciated.
Go to www.pcg.org.uk (http://www.pcg.org.uk) and download the Guide to Freelancing. But there's one on the links on this page if you look really hard.

Rule 1 of contracting - think for yourself, don't rely on others to do it for you.

srk
4th September 2011, 22:16
Thanx Waldorf and malvoli

LisaContractorUmbrella
5th September 2011, 12:19
[QUOTE=srk;1386999]Thinking of becoming a contractor, is it true that a contractor working for a umbrella company has to pay employers N.I from their own pay.
In this case is it that as a contractor whose 24 month period has exceeded and is termed as a permanent employee takes home less net pay then a normal permanent member of staff if the rate of pay is the same.


An umbrella company has a business to business contract with the recruitment agency and, in that contract, a rate will be given. The umbrella company invoices for that rate and then receives payment for that invoice; from the money that they receive they must pay you, HMR&C (income tax, employee's NI and employer's NI) and retain an amount for themselves.

When a contract exceeds 24 months or from the point that you know a contract will exceed 24 months you will no longer be able to claim travel or accommodation expenses.

srk
6th September 2011, 05:05
Thank you Lisa