Umbrella Companies Umbrella Companies
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  1. #1

    Nervous Newbie


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    Default Umbrella Companies

    Hi

    Appears I will have to go umbrella, just wanted some advice on who to avoid, got a few quotes, one company claiming an 84% pay out, I have heard anything over 80 is most likely not HMRC compliant, don't want any stress with them gottten into enough trouble already

  2. #2

    My post count is Majestic

    northernladuk's Avatar
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    You are right in your thinking. Tons about this in this part of the forums. Check the stickies and check some of the posts.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #3

    Should post faster


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    There's very little to choose between most compliant Umbrella companies, in terms of actual take-home pay. PAYE is PAYE. Anyone quoting much bigger £££ each month is either fiddling their assumptions (you mean you don't work 365 days a year?!) or doing something dodgy. The only real difference in take-home pay will be down to their fees, so if you really want to get every last penny then go for the one with the lowest fees.

    Personally if I was going to go Umbrella I would ignore the fee level (unless manifestly out of line with the market) and go for a provider that appears to be well-established, professional and approachable. You could look at accreditations such as FCSA if you like, although not all the good Umbrellas are members. You might also consider how flexible they are in terms of pension contributions, if that matters to you.

  4. #4

    Fingers like lightning


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    Quote Originally Posted by oldbond1 View Post
    Hi
    Appears I will have to go umbrella, just wanted some advice on who to avoid, got a few quotes, one company claiming an 84% pay out, I have heard anything over 80 is most likely not HMRC compliant, don't want any stress with them gottten into enough trouble already
    Hi oldbond1, use simple logic and even as a 20% tax payer, there are other deductions to take into account when you go through a brolly. All take home should be the same via any compliant umbrella, give or take a few pennies. We don't make up the tax rules, so there is no room for movement
    Pick up the phone and speak to any you are considering, make sure they can answer any of your queries.

  5. #5

    Super poster


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    Umbrella companies can be quite creative in how they quote.

    Any take home rate above 70% should be carefully examined.

    Look out for:

    High levels of expenses take up which are unacheivable.
    High levels of salary sacrifice type arrangements, swapping real money for vouchers etc.
    Too many days working

    Also look out for umbrellas charging employer NIC on every £ and ignoring the fact that the first £8k or so is in fact NIC free.

    Look to those with experience who have seen and understand the market.

    Lucy at Clarity is one such and as the name suggests, will be clear.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

  6. #6

    Fingers like lightning


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    Quote Originally Posted by webberg View Post
    Lucy at Clarity is one such and as the name suggests, will be clear.
    Thanks webberg

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