Umbrella Company , Advise Please

[dieseldick]

£960 top line for a 48 hr week , i get £20 per hour. minus 18% is £787.

i have to pay eekly outgoings of -

digs - 120
fuel - 60
food - 120
laundry - 12

what could i expect to be left with after i give in my weekly expenses etc. i need this job but cannot take it if i am n ot getting enough money to travel all way to uk / portsmouth to work.

some umbrella companies claim to give back 90% of your wage ?

[fiction-factory]

Even if all these are legitimate expenses the best you can do is offset them against your gross income so you pay less tax and NI. I estimate that will save you around £312 @20% = £62 pw.
But you will have to pay and admin fee plus employers' NI. Thi

[Peter Pedant]

Hi Deez

this is a duplicated question - er which I answered at great length this morning.

I dont know about umbrella companies - but there is a lot of case law on X has U as an umbrella company to pay Y, the employees - or some of them.

On the information being given you are STILL being paid by the hour ( so it is NOT a contract for services but is an employment contract ) and the 18% being held back represents exactly the PAYE for your contract

sorry

and yes I thought you SHOULD take the job

and remember from the other thread, Mosaic would like the job if you dont ( she is academic but never mind I am sure retraining wont go amiss ) and 960 a week is a drink short of £52 000 pa gross and most people can scrap by on that

[jennyjoan]

could you count less for food £120 unless you are a hippo is a lot for a week - laundry could be cut down - one white one dark wash for a week. Deffo weee bit of cutting down.

[dieseldick]

i called the umbrella group today, they told me after they deduct tax and ni etc i will be left with £770 per week.

then i have to pay digs out of that plus pay my own place back home, hmmmm i dont think its going to pay me, i thought they would of given me a bit more.

[cazza247]

Your food bill for a week is OTT even on a protein diet

[fiction-factory]

You may want to read this
https://www.ucatt.org.uk/files/publications/141023%20Umbrella%20Company%20Con-Trick%20Report.pdf
I think the 18% here is the employers' NI of around 13% (which is passed on to you) plus the payroll processing fee which is typically around 4%) and maybe there's a pension/holiday pay deduction in there too.
You still have to play employee's NI and tax. You can offset legitimate expenses necessarily incurred against tax but you have to keep receipts to prove to HMRC if asked that these were genuinely incurred.

[fiction-factory]

This is worth reading too.
There is a lot of smoke and mirrors with umbrella companies but it's probably worth giving it a go for a few weeks to find out how much you get in practice

[fiction-factory]

http://www.contractorumbrella.com/employers_nic.html

[dieseldick]

cazza247 you should of been a detective, though i think you should reply to the question other than asking a non sensical question about someones diet, anyway its an open forum.

i put more food cost down obviously to make my outgoings more. hence get taxed less, or am i wrong ? ( again)

[fiction-factory]

>"i put more food cost down obviously to make my outgoings more. hence get taxed less, or am i wrong ? ( again)"

To get the tax relief HMRC require that the amounts spent on food are actually incurred and necessarily incurred in the course of your job. They say you should keep receipts in case they do a spotcheck. They generally turn a blind eye to maybe £5 or £10 a day but will there is a good chance they will question claims of over £20 a day. It has to be food and drink and can't include packed lunches or supermarket purchases- only receipted meals.

I soon realised there was no point spending £10 a day on asandwich, coffee and cake just to get £2 or £3 back in tax and NI savings when I could just spend £2 on a decent packed lunch