Umbrella Companies

[Bluedot]

No, not the ones that make things to keep you dry

Starting this topic as I'm sure there will be quite a few looking for recommendations or warnings with regards umbrella companies as the whole off-payroll thing starts to kick in.
Be nice to try and keep this on topic rather than get dragged into the usual IR35 conversations.

I've got the following list to choose from:
Parasol Limited
Exchequer Solutions Limited
PayStream MyMax Limited
Focused Consulting Limited
KPPES Limited (MyKeyPay or “Key”)
Green Lantern Trades Limited
Crest Plus Operations Limited
NWM Solutions Limited
Clipper Contracting Group Limited
Giant Professional Limited
JSA Services Limited
Orange Genie Cover Limited
Danbro Ltd

I contacted Paystream yesterday and got quite a terse mail back asking for my mobile number (already provided by the contact form), so I replied back with it anyway, then got another email today asking the exact same thing... Not a good start.
These brolly companies are going to get inundated with contractors in the near future, its a license to print money for them so they need to be seen to be ready and 'on it' right from the off.

[Pinkie15]

I used Atlantic Umbrella about 5 yrs ago. No idea if they're still going

They're agreed limits with hmrc regarding meals we're by far the most generous of the ones I contacted (can't remember the others)
£5 for brekkie if leave home before 6.30
£8 for lunch if on-site for more than 5 hrs
£20 evening meal if out for more than 10 hrs (incl travel time)
Could claim extra £5 on top of mileage if commute time more than 2 hrs (maybe it was 3)
Auto-enrolled in a basic pension scheme

[ceesvdelst]

I used umbrella's a far bit contracting in manufacturing.

In my experience of using one, or ringing around, the quotes they give you are similar, but the actual amount you receive is NEVER what they quoted you.

I would be hesitant to use them again as they often charge an awful lot for very little.

Yes you get the higher income, but the charges I found to be extortionate, especially when I was quoted A and received B, and I did this several times with different umbrella's.

Might vary in certain industries, but I would advise against them unless you have a good relationship with one.

[EmilA]

I used Danbro a few years ago when I had a role inside IR35. About 16 months after I left their services, they called me and said that I was owed some money, can't remember if this was holiday or missing pay etc, but a few days later got a cheque in the post for it.

Always been good to use, but Parasol had a user friendly interface aswell when I used them before

[deebs]

Bluedot said:

No, not the ones that make things to keep you dry

Starting this topic as I'm sure there will be quite a few looking for recommendations or warnings with regards umbrella companies as the whole off-payroll thing starts to kick in.
Be nice to try and keep this on topic rather than get dragged into the usual IR35 conversations.

I've got the following list to choose from:
Parasol Limited
Exchequer Solutions Limited
PayStream MyMax Limited
Focused Consulting Limited
KPPES Limited (MyKeyPay or “Key”)
Green Lantern Trades Limited
Crest Plus Operations Limited
NWM Solutions Limited
Clipper Contracting Group Limited
Giant Professional Limited
JSA Services Limited
Orange Genie Cover Limited
Danbro Ltd

I contacted Paystream yesterday and got quite a terse mail back asking for my mobile number (already provided by the contact form), so I replied back with it anyway, then got another email today asking the exact same thing... Not a good start.
These brolly companies are going to get inundated with contractors in the near future, its a license to print money for them so they need to be seen to be ready and 'on it' right from the off.

I'm about 2 months into using parasol and they have a decent enough online portal to use, they run payroll 4 times a day etc. Set up was very easy /had someone call me , talked through how it all worked and then completed online. Based on my short experience so far I'd recommend to friends of they were looking.

[sinbaddio]

You should try www.thewageshop.com

But then I am slightly biased.....

[V8mate]

sinbaddio said:

You should try www.thewageshop.com

But then I am slightly biased.....

Nice website. But it only talks in terms of contractors and agencies.

Can you support contractors contracted directly to public sector organisations and inside IR35?

[sinbaddio]

V8mate said:

Nice website. But it only talks in terms of contractors and agencies.

Can you support contractors contracted directly to public sector organisations and inside IR35?

Thanks V8mate. We operate primarily through the private sector, via temp labour agencies - so in short, probably not.

[V8mate]

sinbaddio said:

V8mate said:

Nice website. But it only talks in terms of contractors and agencies.

Can you support contractors contracted directly to public sector organisations and inside IR35?

Thanks V8mate. We operate primarily through the private sector, via temp labour agencies - so in short, probably not.

Cheers.

[carboy2017]

I agree fully as I used PArasol 10 years ago when contracting in IT and the amount they said I will get I never got and got much less and 1 month it was little less than 60% that I got which made me livid as my day rate too was low at £175 p/d

I emailed them and said im going to leave and then they refunded a bit ,they charged a hell of a lot of admin and misc fees too,not sure how it is now

ceesvdelst said:

I used umbrella's a far bit contracting in manufacturing.

In my experience of using one, or ringing around, the quotes they give you are similar, but the actual amount you receive is NEVER what they quoted you.

I would be hesitant to use them again as they often charge an awful lot for very little.

Yes you get the higher income, but the charges I found to be extortionate, especially when I was quoted A and received B, and I did this several times with different umbrella's.

Might vary in certain industries, but I would advise against them unless you have a good relationship with one.

[kinabalu]

I've been unwillingly pushed down the umbrella route recently for a couple of contracts with Housing Associations secured via an agency.

The fees are indeed eye watering, they will advertise a weekly fee of around £22 & mention NI, there's the crunch. They were deducting 13.8% from my gross payment as employer NI, along with gap pay & apprentice levy. What was left normal tax & employee NI were paid.

1 week these "fees" were £246 off my gross.

1st contract I earned £6800, umbrella fees deducted were £879, when it came to me doing my a/c's they point blank refused to break this down into NI/gap/levy/weekly fee.

I don't pretend to understand IR35 but the Employer NI part at 13.8% seems to be a bone of contention & widely thought of as a bit of a con, I'm not even sure where it goes.

So, as someone stated above, thought I'd earned A & what finally landed in my a/c was considerably less.

Unfortunately took me a while to cotton onto this & just grossed £16k on another job, so need to investigate how much they've taken from that.

I've had enough & seeking a way out.

[The Li-ion King]

I have used Giant before, they were good. Parasol had me on an Emergency Tax code for ages, and made me go down the Private Limited route. Eden is another one worth a punt. I guess these umbrella companies can do all the chasing if the accounts of said gig don't pay up in time. I'm just PAYE now as the contract route was too hit and miss and HMRC always wanted paying, no matter if you were working or not

[kinabalu]

My example above is with Giant, hoping not breaching name & shame here as they all do the same.

My point is when you lose £246 in a week before normal employee NI & income tax are applied & they won't break down fees something isn't right.

Check your pay slips, specifically EmployeR NI deducted from your gross before EmployeE NI & income tax is applied.

I'm 50 +, explain why I'm paying an apprentice fee?

They also put me on an emergency tax code & tried to deflect me re high fees because of this, irrelevant, code was applied after their deductions & I was earning elsewhere without deductions at source so it balanced out over the year.

[aeropilot]

kinabalu said:

I'm 50 +, explain why I'm paying an apprentice fee?

It's got noting to do with you or your age, its the Apprentice Levy all employers (which is your Umbrella Company) have to pay if they have a paybill in excess of £3m. The Levy is 0.5% of an employers paybill.
So, by default most Umbrellas will have to pay that fee to Govt., and so are making a deduction from your money to cover it.

This is why Govt have killed contracting now.....stuffed using PAYE through a brolly, and stuffed can't work through a PSC (unless very lucky)

[V8mate]

I don't understand why accountants aren't introducing their contractor clients to each other and encouraging small groups (up to 20, say) to form their own umbrella orgs.

At the very least, each contractor would save the £500 levy. They could nominate their own directors, all have a say on the applicable fee structure, and the accountant would get to keep their business.