Umbrella and Payment
Discussion
I am considering my first umbrella work and I have a question with regards to payment.
I was led to believe that payment was made from the end client to the umbrella company and then to me.
Discussing this role with the agent it is apparent that the payment is from the end client to the agent who then pays the umbrella and then to me.
With my simple hat on this seems very similar to a PSC?
My concerns are that:
(1) The agent is negotiating a day rate separate to the end client.
(2) Added delays in payment.
I was led to believe that payment was made from the end client to the umbrella company and then to me.
Discussing this role with the agent it is apparent that the payment is from the end client to the agent who then pays the umbrella and then to me.
With my simple hat on this seems very similar to a PSC?
My concerns are that:
(1) The agent is negotiating a day rate separate to the end client.
(2) Added delays in payment.
Yes - the trick is to place as many "intermediaries" as they can between the individual and the organisation for which he/she is actually doing the work.
Just watch out for IR35 implications and any fancy "tax saving schemes" they may want to throw at you.
It is shark infested territory.
Just watch out for IR35 implications and any fancy "tax saving schemes" they may want to throw at you.
It is shark infested territory.
Greenmantle said:
I am considering my first umbrella work and I have a question with regards to payment.
I was led to believe that payment was made from the end client to the umbrella company and then to me.
Discussing this role with the agent it is apparent that the payment is from the end client to the agent who then pays the umbrella and then to me.
With my simple hat on this seems very similar to a PSC?
Yes.I was led to believe that payment was made from the end client to the umbrella company and then to me.
Discussing this role with the agent it is apparent that the payment is from the end client to the agent who then pays the umbrella and then to me.
With my simple hat on this seems very similar to a PSC?
Greenmantle said:
My concerns are that:
(1) The agent is negotiating a day rate separate to the end client.
True, but that applies irrespective of the use of an umbrella. All you're bothered about is the rate the agent is paying you. (1) The agent is negotiating a day rate separate to the end client.
Greenmantle said:
(2) Added delays in payment.
Not necessarily. The one umbrella I used paid weekly irrespective of when the money came from the agent. Also remember the agency is paying you for your services, not passing on payments from the end client.Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff