Transfer for FREE Between ContractorUmbrella and Dolan Accountancy

Find Out More

Umbrella Companies: New to Contracting

Hello, I am due to start work next week and have registered with an Umbrella Company, this is the first time I've used them and have to say after reading through some of the posts on this forums it has saved me from making a possibly huge mistake. The company I signed up with have added around £194.05 worth of fees per week. My daily pay will be £121 and the illustration I have been given is:

Your net weekly salary: £457.91
Weekly Personal Mitigation Fund: £34.55

I think the company have inflated the figures a bit, I have registered with them today but quite sure that I do not have a leaving fee. Does those figures look correct? Will the net be less if I do not have these expenses which I wont have? Many Thanks

ContractorUmbrella Respond:
This is a calculation based on 810L tax code and assuming that you have no expenses:

Income 605.00
Expenses 0.00

Employer's NI 52.33
Employee's NI 45.50
Employee Tax 73.35
Total All Tax 171.18
CU Margin 27.50
Total Net Income 403.76

Do you have a breakdown of the calculation from your umbrella company - it is possible that an amount has been included for expenses that you are not actually entitled to claim or, alternatively if this is a calculation based on specific information, it may be that you are not working on a standard tax code or you have missed pay periods.

Thank you for you reply, They advised of £100 mileage and £94.05 food?

ContractorUmbrella Respond:
So, would you be travelling 220 miles each week and spending £18+ per day on food?


ContractorUmbrella Respond:
Then the calculation you have been given is totally incorrect and if they do put through those expenses without you having incurred them you will be in dead trouble with HMR&C. If the umbrella company was recommended to you it may be an idea to let the recommender know.

Why Choose ContractorUmbrella?

ContractorUmbrella is the hassle-free, straight talking umbrella company that provides umbrella employment for UK based contractors and freelancers. Independently voted as the best umbrella company by the readers of Contractor UK.

As one of the most trusted umbrella companies in the UK, we guarantee our employees peace of mind, absolute compliance and complete security. We are one of the longest standing and most respected umbrella companies in the UK.

Benefits of working through ContractorUmbrella;

  • Fast and easy registration-  be ready to work in 24 hours, simply register online and we’ll take care of the rest.
  • Calculate your take home pay- use our online calculator to find out how much you could be taking home through ContractorUmbrella.
  • Same day payments- we offer same day payments as standard, for no additional fee.
  • Our Commitment Charter- is our guarantee that you will be looked after at every step of the way.
  • Flexible Limited Company accountancy- when you sign up to our sister company Dolan Accountancy, you can transfer to ContractorUmbrella when umbrella employment better suits or your assignment sits inside IR35.
  • Employee Benefits- at ContractorUmbrella there are many benefits available to you as our employee including Childcare Vouchers, our Employee Rewards Scheme, Group Pension Scheme, Foreign Currency Exchange, Contractor Accommodation, Contractor Mortgages and much more.
  • Personal Employee Liaison Officer- we believe in the personal touch, so you will have your very own dedicated Employee Liaison Officer during your employment with us. Read some of the glowing testimonials we've received about our lovely staff and the outstanding commitment they give to all our employees and clients.

If you’d like to find out more, call us on 01206 591 000 or request a call back by completing our online form.