Umbrella take home pay………why do quotes differ so much?
The short answer to this question is they shouldn’t, the only way Umbrella companies should compete with each other is on fee/margin.
What does a typical Umbrella company fee look like?
Most umbrella companies will be upfront and publish their fee but some don’t. The fee is typically charged weekly and can be anything from £15 a week although in some cases it’s significantly higher for no discernible reason.
Why are there so many Umbrella company brokers on Google?
Umbrella brokers are a relatively new phenomenon and with margins as tight as they are you may wonder where they make their money. In reality its hard to say but presumably their model is based on the sheer volume of people who need an Umbrella company service.
The current uncertainty in the labour market may well increase this due to employers being less likely to take on full time employees. If you engage with a broker be careful to understand what they do with your data to ensure they don’t just sell your details on to multiple companies.
High take home adverts – 80%-90%
Tempting as they may initially seem under closer inspection these offers fall into what is known as disguised remuneration and tax avoidance. They Usually involve a minimum wage salary followed by a large payment in the form of an advance, loan or trust payment that is not disclosed to HMRC.
This is a guaranteed path to attention from HMRC with the potential of large tax bills and in some cases financial ruin.
If you are in any doubt follow the advice from HMRC in the link below.
https://www.gov.uk/government/collections/tax-avoidance-disguised-remuneration
My agency has recommended an Umbrella company
This may often be the first time you encounter the idea of an Umbrella company and whilst an agency recommendation can be a good idea you may end up paying a higher fee if the recruitment agency takes a fee from the Umbrella company.
Quad Management Ltd are independent and charge £15 a week
Umbrella Employment for Contractors that is Fair, Compliant & Competitively Priced