Need to make a quick decision on an umbrella Need to make a quick decision on an umbrella
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  1. #1

    Nervous Newbie


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    Default Need to make a quick decision on an umbrella

    Hiya

    I'm being given the option of PAYE or umbrella by a new client and need to decide on which route to take ASAP. It seems that umbrellas will give me a better take home pay, but I'm wary of them having been burned by dodgy ones in the past.

    The client in question has a list of approved suppliers and I've heard of a few of them which is good...I think I have it down to a few contenders but can anyone give me a really quick 'yay or nay' on any if you have RECENT experience of any of the following:

    - Giant
    - Parasol
    - Clearsky
    - Contractor Umbrella
    - Amaze

    Huge thanks in advance

  2. #2

    Should post faster

    DolanContractorGroup's Avatar
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    Hi Hollyhock,

    They're all FCSA members so you won't be burnt by any of them.

    I'm sure Clearsky is an accountancy provider though, not umbrella. Hmm.

    Kind regards


    Zeeshan

  3. #3

    Still gathering requirements...


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  4. #4

    Nervous Newbie


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    Quote Originally Posted by DolanContractorGroup View Post
    Hi Hollyhock,

    They're all FCSA members so you won't be burnt by any of them.

    I'm sure Clearsky is an accountancy provider though, not umbrella. Hmm.

    Kind regards


    Zeeshan
    Many thanks for your help - I've done some more reading around and think I have a candidate in mind IF I decide to go the umbrella route.

    I'm still wondering whether PAYE might be simpler, but I have a question I can't get an answer on from my agency.

    The net pay amount they have quoted for PAYE is lower than the umbrella net pay - however - it doesn't include holiday. When I add the holiday pay I would accrue each day on PAYE, I get a better net pay for PAYE.

    What I don't understand is what happens if I don't take any holiday, which is possible on a shortish contract.

    Can anyone explain how this works? Would I still get the unused holiday pay back at the end of the contact? This would be a 'PEO' solution.

    Thank you.

  5. #5

    Double Godlike!

    ladymuck's Avatar
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    Quote Originally Posted by Hollyhock View Post
    Many thanks for your help - I've done some more reading around and think I have a candidate in mind IF I decide to go the umbrella route.

    I'm still wondering whether PAYE might be simpler, but I have a question I can't get an answer on from my agency.

    The net pay amount they have quoted for PAYE is lower than the umbrella net pay - however - it doesn't include holiday. When I add the holiday pay I would accrue each day on PAYE, I get a better net pay for PAYE.

    What I don't understand is what happens if I don't take any holiday, which is possible on a shortish contract.

    Can anyone explain how this works? Would I still get the unused holiday pay back at the end of the contact? This would be a 'PEO' solution.

    Thank you.
    Yes, you would get any accrued holiday pay at the end of the contract. It should be in the T&Cs

  6. #6

    Nervous Newbie


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    Quote Originally Posted by ladymuck View Post
    Yes, you would get any accrued holiday pay at the end of the contract. It should be in the T&Cs
    Many thanks - for some reason it really isn't clear, just says that you should 'aim to take your allotted time off' and that it 'won't be carried forward into a new year' - but I don't see anything about getting the full amount back at the end of a contract.

    Possibly this is just too obvious/already covered by employment law for them to have to state it? But this being said, my agent didn't know the answer...

  7. #7

    Fingers like lightning


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    Quote Originally Posted by DolanContractorGroup View Post
    I'm sure Clearsky is an accountancy provider though, not umbrella. Hmm.
    Yep, all of their umbrella is through Parasol.

  8. #8

    Fingers like lightning


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    Quote Originally Posted by Hollyhock View Post
    The net pay amount they have quoted for PAYE is lower than the umbrella net pay - however - it doesn't include holiday. When I add the holiday pay I would accrue each day on PAYE, I get a better net pay for PAYE. What I don't understand is what happens if I don't take any holiday, which is possible on a shortish contract. Can anyone explain how this works? Would I still get the unused holiday pay back at the end of the contact? This would be a 'PEO' solution.
    You will need to check on the PAYE that they are acruing an amount for holiday, in which case at the end of the assignment if you hadn't taken holiday then they have a legal obligation to pay you that back in the last pay packet. Umbrella will either acrue the holiday or sometimes roll it up and it is deemed to be paid back everytime they make a payment ot you, but is covered by the day rate (contract / invoice rate) given.

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