Umbrella Company Calculator Comparisons
You have all seen the adverts from Umbrella Companies offering 80%, 85% or even 90% take home pay and have probably all had the same thought about them – that seems too good to be true. And you’re right, it is.
Most Umbrella Companies have a calculator on their website and you would think that it is there to give contractors an accurate idea of their take home pay. Unfortunately this is often not the case. Contractors are able to claim certain expenses when working through an Umbrella Company and these are processed as a tax benefit which means that taxable income is reduced by the value of expenses claimed. In a bid to secure your business, some companies will assume a figure for expenses, regardless of whether or not you have actually incurred them, so that they can give you a higher estimated net return.
Obviously this is misleading as your pay packet will only be as heavy as promised if you actually incur the costs that the Umbrella Company has assumed as expenses. Some companies build as much as £800.00 in expenses into their calculators and this would be over and above any figure that you may enter. Your net pay, if you don’t incur that level of costs, would then be over £300 less than you expected. This amount of money will obviously have a big negative impact on the average household budget!
ContractorUmbrella Ltd don’t make any assumptions on their calculator because we want you to be happy when you open your first payslip and not angry and disappointed because you have been misled.
In reality all Umbrella Companies are the same except in two small details – the fees that they charge and the levels of service they offer. Your net return from one Umbrella Company will be almost identical to your net return through any other; the only difference would be any variance in the fees that they charge.
Therefore, your main consideration when choosing an Umbrella Company is whether or not you would be happy to work with them. You should be able to trust their advice and have complete peace of mind that your valuable earnings are being processed in a way that is completely in accordance with HMR&C guidelines.
ContractorUmbrella has a full, money backed, service guarantee and its processes have been independently reviewed by 3 major industry bodies to confirm that it is fully compliant.
Our expert advisors will be happy to answer any questions that you may have and can be contacted on 01206 713680 or at info@contractorumbrella.com.
