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  1. #1

    Nervous Newbie

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    Question Hello and Umbrella Calculators / Take Home

    Hi all,

    I'm hopefully returning to the heady world of contracting pending an interview next week and I have a question regarding the calculators on the various sites out there.

    I think I already know the answer but as it's been a while I thought I'd better ask.

    A lot of these sites are claiming that they can get me over 80% of my rate. I'm of the belief that Umbrellas can only get me anything up to 65% or close to that figure and that for that 80% figure I'd be looking at doing things myself through an LTD?

    There's one site specifically that I clicked on from the front page of this site claiming 85%, should I pursue or look elsewhere?

    Thanks.

  2. #2

    Nice But Dim

    DaveB is a fount of knowledge

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    Quote Originally Posted by Moif View Post
    Hi all,

    I'm hopefully returning to the heady world of contracting pending an interview next week and I have a question regarding the calculators on the various sites out there.

    I think I already know the answer but as it's been a while I thought I'd better ask.

    A lot of these sites are claiming that they can get me over 80% of my rate. I'm of the belief that Umbrellas can only get me anything up to 65% or close to that figure and that for that 80% figure I'd be looking at doing things myself through an LTD?

    There's one site specifically that I clicked on from the front page of this site claiming 85%, should I pursue or look elsewhere?

    Thanks.
    A simple brolly will get you 65% as you said. Anything over and above that needs some clever application of expenses and / or EBT's, Offshore arrangements etc. especially the ones claiming 80%+.

    You should get around 75% from a properly run Ltd, more if you can stick extra cash into your pension fund rather than paying it out as divi's or salary.

    Choice is yours at the end of the day more money + more risk or a bit less money and not worry about it. It's you that HMRC will come chasing after, not the brolly, if it all goes pear shaped.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

  3. #3

    Nervous Newbie

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    Quote Originally Posted by DaveB View Post
    A simple brolly will get you 65% as you said. Anything over and above that needs some clever application of expenses and / or EBT's, Offshore arrangements etc. especially the ones claiming 80%+.

    You should get around 75% from a properly run Ltd, more if you can stick extra cash into your pension fund rather than paying it out as divi's or salary.

    Choice is yours at the end of the day more money + more risk or a bit less money and not worry about it. It's you that HMRC will come chasing after, not the brolly, if it all goes pear shaped.
    Hello Dave,

    That's just as I suspected. I'll probably be going with an Umbrella as, just as you rightly stated, it's one less thing to worry about.

    Thanks for the clarification.

  4. #4

    Nice But Dim

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    Quote Originally Posted by Moif View Post
    Hello Dave,

    That's just as I suspected. I'll probably be going with an Umbrella as, just as you rightly stated, it's one less thing to worry about.

    Thanks for the clarification.
    I'd actually say the Ltd route was the best way to go. One less person between you and your cash and it's straight forward to manage with a good accountant.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

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