Hi There,
I've just started my first agency contract and I can't for the life of me understand my rate of pay. My consultant said that I'll get £21.30 (Limited) ph if I use an umbrella company. I think this means I can't claim holiday pay, nor will my agency make employer based NI contributions but that I can claim tax back on travelling to work costs and lunches.
However, I feel that I'm receiving the hard sell to register with this 'umbrella' company (Ricson Services) from my consultant. He said if I don't register with them my rate of pay will be £17.50ph but I will get holiday pay. Does the gap between £17.50 and £21.30ph sound right? I'm struggling to know what the right thing to do is, especially since they really are trying to sell me the services of Ricson.
Thanks in Advance
Hi, go with the limited option, even missing out on holiday pay you are £'s better off. I did the calculation 4 years ago when I went limited. You will need to find an accountancy service, I use a company called DELBECK 01223 257 885 they will guide you through the process. you also have the (imagined) Kudos of being a company director as you take £150 a week as an employee of your own company and the rest, after expenses are calculated, you pay corporation tax at 21%.
Simples!!!
All the best. V
"(imagined) Kudos of being a company director"
Haha i have visions of you reclining in a big black office chair at home, pointing to a line up of soft toys and exclaiming "you're fired!"