I’m looking for my 1st job in the industry and there seems to be a lot of agencies out there trying to sign newbies up. I had an “Interview” with one agency on Sunday and he was trying to sell me the benefits of getting paid through an umbrella company rather that PAYE. Apparently I would receive an extra £1 an hour and be able to claim money back on petrol/meals/expenses etc.
Is it worth it?
Once the fees have been paid and the reductions taking into account is the extra £1 even seen?
I’m not really looking for agency work but if that’s how I have to get my foot in the door then so be it. What I don’t want to do is sign up to one of these umbrella companies and really regret it!
Has anyone signed upto an umbrella company before? What did you think? what are the real benefits and pit falls.
lots of debate on that umbrella thing and the general conclusion is - avoid.
Umbrella companies are supposed to pay the tax and there are people who ended up receiving huge tax bills due to umbrella company claiming back to much. Have not tried myself but that is what i have gathered after my research.
don’t do it. In my limited experience, If they want you bad enough they will put you on PAYE. Just insist and stand your ground That’s what I did anyways. Good luck
Ok so you got the convenience of someone else sorting out your tax and national insurance every month, but I question with that system could you be over charged plus I think you pay a fee for all of this and what if the company doesn’t do what they say or they go out of business…you end up with a tax bill / demand from the ya olde tax man…
Id rather just take the money and sort it out myself… plenty of enough online calculators to help which works out how much tax and NI you need to be paying…
Was looking into this and my plan was have a separate savings account and each time I was paid… crunch the numbers and then transfer the amount of Tax & NI into the savings account… thus at the end of the financial year you’ve got the money there to pay
Ye thats what I am thinking too. Paying someone else to do what I could quite easily do myself or just opt for the PAYE on the lower rate. After the fee is paid would I really miss the extra pound?
Like the idea of a separate account for the tax man…may use that if I ever have to, hope you dont mind (or tax me on it )
That’s what I did anyways. Good luck
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