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can anyone help?

 

FACT-at the moment i work 40hrs per week subcontract at £15 per hr.= Earnings £600 minus 20% tax=net take home £480.

 

I have been told that because i work pretty continuous with the same firm i have to go PAYE on £12 using my own van to get to work.

 

OR

 

Work for the firm but through an umbrella company at £14 per hr.

 

 

I have not got a clue what it all means neither does my gaffers really.

 

I just seem to think that either way after expenses i will be worse off by over £100 per week take home

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Is this 20% tax income tax? does it include national insurance?

 

Is the tax (and ni?) being deducted by your employer before you get the money or are you being paid gross and you settle up with HMRC later

Edited by andyofborg

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Umbrella firms are there to pay your tax, they do the paperwork so whoever your working for doesn't have too, but they will charge you for the pleasure.

 

It's a rip off and just another way of skimming money from construction wages.

 

If you are subcontracting you should set out what you charge like £15per hour or part off + mileage.

 

If you go on the books (paye) tell them you want a van providing + sick pay & 4 weeks holiday per year and you'll take the drop in wages.

 

Don't let them grab you by the short and danglies, listen to what they say and research it because they will lie to you, if you don't like it find someone that appreciates your work and is prepared to pay a decent wage for it,

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can anyone help?

 

FACT-at the moment i work 40hrs per week subcontract at £15 per hr.= Earnings £600 minus 20% tax=net take home £480.

 

I have been told that because i work pretty continuous with the same firm i have to go PAYE on £12 using my own van to get to work.

 

OR

 

Work for the firm but through an umbrella company at £14 per hr.

 

 

I have not got a clue what it all means neither does my gaffers really.

 

I just seem to think that either way after expenses i will be worse off by over £100 per week take home

 

You won't be worse off...it's called tax which we all have to pay (and setting up as self employed, but working for one employer only, is deemed to be avoiding tax which we all, these days, absolutely abhor ;-)) :hihi:

 

Is the Van needed for your work? If so, you could charge your employer £0.45/mile for journeys you have to do for work (for the first 10,000 miles; it's £0.25/mile after that); you cannot claim petrol etc back though (its assumed to be included in the mileage rate).

 

I'd speak to an accountant, if I was you.

 

---------- Post added 03-03-2015 at 15:27 ----------

 

listen to what they say and research it because they will lie to you

 

Why would the employer lie? I don't understand.

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Hi Mate,

 

I've just done a calculation based on you doing 40 miles per day (assumption), and with subsistence for food and drink at £10.00 per day.

 

your takehome will be 473.54 per week, so not bad compared to PAYE which will be 383.22.

 

perhaps you want to give me a call 07906503169

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Hi Mate,

 

I've just done a calculation based on you doing 40 miles per day (assumption), and with subsistence for food and drink at £10.00 per day.

 

your takehome will be 473.54 per week, so not bad compared to PAYE which will be 383.22.

 

perhaps you want to give me a call 07906503169

 

Think they are about to change things so you cannot claim the subsistence any more.

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The British Government has no intention to stop agencies using umbrella companies and that it recognises the value of umbrella companies and the important role they have in supporting the UK’s flexible labour market.

 

 

The reason why the welsh government banned umbrella companies, is because Agencies and contractors were forcing the workers to pay the NI contributions they should be paying.

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[quote

 

Why would the employer lie? I don't understand.

 

Umbrella companies will tell you all sorts of rubbish so you have to use them, in my experience anyway.

 

I use to get charged something like 5% for the privilege of them paying my tax which is poor.

 

Agencies should sort this out themselves, they make a fair wack from hard up tradesmen and Iv always said that in commercial/site/agency work too many people touch your money before it gets to you.

 

Employer - agency - umbrella company - you that's the journey your wages go on and at every stop someone takes a slice

 

---------- Post added 03-03-2015 at 17:19 ----------

 

The British Government has no intention to stop agencies using umbrella companies and that it recognises the value of umbrella companies and the important role they have in supporting the UK’s flexible labour market.

 

 

The reason why the welsh government banned umbrella companies, is because Agencies and contractors were forcing the workers to pay the NI contributions they should be paying.

 

Agencies should pay your tax, if they want to outsource the administration work why does the tradesmen have to pay for it?

 

---------- Post added 03-03-2015 at 17:57 ----------

 

http://www.mirror.co.uk/news/uk-news/workers-were-promised-13-hour-4486402

 

Some quotes taken from that article

 

The latest attack on workers’ rights, and perhaps the most devious and complex yet, is coming from umbrella companies.”

 

Instead of £403, Andrew got £294.80.

 

“I couldn’t make head nor tail of the payslip,” he said. “I asked Mint what APBA was and they just talked gibberish.”

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If you s/e working as a labour only and on an hourly or day rate then after a certain amont of time dwp regards you as employed and they want their employees NI.

 

I would talk to your accountant as I last dealt with this 10 years ago at least but there was back then ways around it in the construction trade. One was to carry on but your employer pays Employers NI on top of what you already earn. That shut them up! The other was to either work on price or supply some materials so there was a risk of loss. Labour only on an hourly rate is seen as a no lose situation.

 

I knew of a contractor that had you supply some simple minimal materials which meant you was not labour only anymore. As to paye earn and suppling your van? Tell them to take a hike unless they are paying towards it!

 

Paye does have it's benefits. Paid holidays for one. Sick pay.

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Many thanks to all people who have replied with their views or experiences.My opinion after reading them is that i`m not going to touch an umbrella company at all.Some say claim food expenses and others say you can`t !!!! whose correct ??

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heres the breakdown.

 

600 gross

20 margin fee

42.40 tax

30.26 ni

34.70 ERNI

 

take home 472.54

 

 

based on 200 miles per week, and £10.00 per day food subsistence.

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