Advantage of Umbrella over working Direct?

[zippy.mini]

You are correct - in order to be able to claim travel and subsistence you must be travelling to a temporary workplace; if you know that you will only be working on one assignment whilst in your employment with the umbrella company it would, by default, become a permanent workplace

Thanks Lisa. Is that the case even if I'm there less than 40% of my time? The rest is working from home?

[LisaContractorUmbrella]

Thanks Lisa. Is that the case even if I'm there less than 40% of my time? The rest is working from home?

Yes, it would still apply

[zippy.mini]

Thanks for your replies so far..

Now, I've just had a bit of an epiphany that I wanted to run by you...

If I were to work direct through the agency, would they pay the Employers NI for me?

As far as I can see, having done some sums looking at take home pay with no expenses vs my current expense levels, the amount I'm being charged for ENI is actually more... I take home approx £100 a week more with expenses, but I get charged £150+ for ENI AND I pay the UC £28.50...

Am I right in thinking that as there is no extra pay from the Agency because I'm going through an Umbrella, I would actually be better off going direct and not bothering to claim expenses?

[moggy]

If I assume that the rates are the same all things being considered paye to ltd with the ni and holiday factors, working via a brolly with no expenses compared to using paye - the difference would only be the brollies fee, so you would be marginally better off with paye through the agency.

[zippy.mini]

If I assume that the rates are the same all things being considered paye to ltd with the ni and holiday factors, working via a brolly with no expenses compared to using paye - the difference would only be the brollies fee, so you would be marginally better off with paye through the agency.

I thought so too, but then I read this on Contractor Umbrella:

"You may be offered two different rates, one to be paid directly through the company’s payroll and another, higher rate, to have your pay processed through an Umbrella Company. The lower rate will apply if you opt to be paid directly by the company because they themselves will be liable for the Employer’s NIC. The higher rate is offered if you are being paid through an Umbrella Company because they are liable to pay the contribution. Provided the difference between the two rates is greater than 13.8%, you will be better off through an Umbrella Company because there are certain business expenses that you may be entitled to claim."

I have not been offered 2 rates, the rate I get is the same regardless as far as I can tell....

[moggy]

I thought so too, but then I read this on Contractor Umbrella:

"You may be offered two different rates, one to be paid directly through the company’s payroll and another, higher rate, to have your pay processed through an Umbrella Company. The lower rate will apply if you opt to be paid directly by the company because they themselves will be liable for the Employer’s NIC. The higher rate is offered if you are being paid through an Umbrella Company because they are liable to pay the contribution. Provided the difference between the two rates is greater than 13.8%, you will be better off through an Umbrella Company because there are certain business expenses that you may be entitled to claim."

I have not been offered 2 rates, the rate I get is the same regardless as far as I can tell....

Think Lisa had mentioned before, that you should most certainly have been given two rates, but if they thought you were going ltd or via a brollie then it is one rate for both, and so might have felt they didn't have to tell you both.

giving you the same rate for PAYE and Ltd would mean you paying Employers NI twice really.

[zippy.mini]

Think Lisa had mentioned before, that you should most certainly have been given two rates, but if they thought you were going ltd or via a brollie then it is one rate for both, and so might have felt they didn't have to tell you both.

giving you the same rate for PAYE and Ltd would mean you paying Employers NI twice really.

They initially sent me the contracts for signing up and going direct through the Agency... I had to ask for the Umbrella forms instead... I suspect they messed up, as I just spoke to the lady who sorted my contract (but didn't send the actual contract forms cos she was on holiday) and she is convinced I would be worse off going PAYE through them. Nobody on my rate of pay goes direct apparently. She did say she'd check up and send me some figures though, so I guess we'll see.