Paid Through Umbrella Company, I Need Advise On This Please.

[dieseldick]

i am thinking of going to work in west sussex. i will work 48hrs per week and i will be paid £20 ph. total wages - £960.

my digs are £120 pw
fuel cost £ 50 pw
food cost £ 100 pw

i believe an umbrella company taxes you at 18% right or wrong ? so if im coming out with 960 minus 18% and i give in my reciets for my digs/fuel etc.

how much wages could i clear, in my pocket home with me per week ?

really need advise on this as i do not know whether to go or not.

thnks

[Mosaic]

DD you've posted this twice, and jusging from the time of this post I'd say this decision to make a change is eating at you. That's the dangerous part - you need to be very calm about this scale of decision.
Make sure you have every detail explained and in writing. I don't know what kind of work it is, but sometimes people find they're having costs of equipment or protective clothing deducted, not explined in the first instance.
If the digs come with the job, how good are they, ditto the food. Get it all clear before you make a decision.
And if it is as good as it looks, can you get me a start?

[Peter Pedant]

mosaic has pointed out ( sudduv ) that a grand a week give or take a drink will give you a gross income of £52 000 - this is twice the national average of 24k so your question is - can I survive on twice the average income ?

answer yes - or as Mosaic said if you dont what the job, can I

It is definitely a contract of employment ( pd by hour ) and NOT service so the deductibles are limited - you will NOT get tax relief on your list of possible deductibles ( whatever they are - digs, paper hankies, trips to the cinema ) as a rsult of very clear tax rules on this

Your tax bill roughly is first ten k tax free - 42 to be taxed
next 38 ( kay ) taxed at 20 % so that is £7600 ( tax ) and 4 at 40% ( you realise that this job would be in a the higher tax bracket and you are actually sayig can I afford it ? but still .... ) a further 1,600

which gives you a tax bill £9,200

which is 18% - - ( yay !! ) as you said

and you get around £42 k in your hot little hand

Re jig this question as - I have a contract of employment and the employer will pay PAYE on my behalf according to standard tax rules which looks like 18% overall

and the asnwer is YES !

subsidiary question should I go - answer - YES !

any other points I can help you with ?

[ yes yes there is - the leading case on whether you are employed or self-employed under these conditions is Ready Mized Concrete v MOPNI ( cue thousands of ABers to say ugh this is gibberish ! ) and you will find this case here:
http://en.wikipedia.org/wiki/Ready_Mixed_Concrete_%28South_East%29_Ltd_v_Minister_of_Pensions_and_National_Insurance

and on the info given - you are DEFFO employed under an employment contract and would pay PAYE ]

Go !

Go!

[dieseldick]

i worked last year only for 10 days through one of these umbrella tax companies for £18 ph i was doing 84 hrs per week . if i can remember they gave me back most of my dig money and gave me a food allowance and a laundry allownace of £15 per day. i forget how they work, i did have to send them all my reciepts.

i also worked offshore for 3 years through a variety of umbrella companies called beduoin , tax angels, IQ contracts. i think the way they work is they tax you on the minimum wage and the rest is a loan.

can anyone explain more ?

[fiction-factory]

Umbrella companies like to give the impression that you can claim for expenses but really they are just facilitating your offsetting some expenses against taxable income so as to reduce your tax bill a bit. But for the privilege you will pay an fee to the umbrella company and pay a huge chunk of EMPLOYERS' NI. Then you have tax and NI deducted. I think you'll be lucky to be left with £650 and then you'll have to find your digs, fuel and food. the money will also include holiday pay
HMRC may also want to see every receipt and be satisfied it's a legitimate expense.
But it's probably regular income for a while and is still decent money.

[dieseldick]

thanks,
no , not decent money for a man to travel , be away from his kids n family.

£20 seems a lot , it would be ok if they could give me 84 hr week but no, im out. ill look around and sit on dole.

[dieseldick]

untill something else comes up. i want to go into my own small business somewhere at home, but what ?