conned

[FlamingParrot]

Re: conned

So UKIP will up the hourly rate for the OP? as they are working for an agency they can look for a better paid job if there are any?
No doubt all this is Legal and within the laws of employment

It is legal, which has been my point all along. As with many other issues, people are not always aware of the full picture, like when you're quoted an hourly rate, does it include holiday pay or is that separate? If you HAVE to go through an umbrella, what will be the charges, etc. It's all down to experience, as they say, you live and learn. :thumb:

[FlamingParrot]

Re: conned

This Ł900 weekly gross includes employers' national insurance, something that I'm not sure if you have taken into account?

I think it is this part that would be a bigger issue as employer's NI is 13.8% for anything above c. Ł140 a week, not insignificant amount!

Not sure that the OP would have to pay EMPLOYERS NI since the umbrella is the official employer (at least they WERE when I used to use them, payslips came in their name), they would be responsible for employers NI.

so I think as bessylu hasn't had his first pay packet yet we need to see what actual deductions are being made.

(takehome on Ł897 and a 1000L tax code wld be around Ł630 inc the Ł22 fee)

I agree, there's little point in speculating. It's also worth exploring the option of deducting expenses if applicable.

I'd also like to point out that, when I used an umbrella, I wasn't paid the full hourly rate as PAYE, it was partly paid as dividends. While some may consider this to be a 'loophole' of some sort, it was all perfectly legal at the time, and I believe it still is, since that's just what you do when you act as director of a limited company.

[wales01man]

Re: conned

In my day Employment agencies paid say 5 quid to the employee and charged a premium to the Employer thus their profit change for the better?
In this case would be interesting to know if the Agency charges the employer more than the hourly rate given to the OP .
Bet it does!

[Mr $quandaŁot]

Re: conned

OP will have to pay employer's NI. I have used umbrellas myself and the rate quoted by agencies in that case includes it as well. Of course, he will know for sure when he gets his payslip and breakdown.

While umbrellas are technically employers, in reality they are no more than payroll processing companies, offering services to agencies and contractors. Umbrellas get the money from the agency. I have had this NI discussion with a couple of agencies, and yes, every time some of them quote the rate it includes employer's NI too.

In your case it was different as you could have been an agency temp. In that case the agency actually tops the rate by the said 13.8% when they transfer the money to umbrella. The same applies to limited companies.

You do need to know when contracting that a PAYE and umbrella difference is roughly 25%. Otherwise you get screwed big time!

[FlamingParrot]

Re: conned

In my day Employment agencies paid say 5 quid to the employee and charged a premium to the Employer thus their profit change for the better?
In this case would be interesting to know if the Agency charges the employer more than the hourly rate given to the OP .
Bet it does!

Of course they do! Otherwise HOW would they stay in business? :confused2: Like any other business, agencies have to cover their fixed costs/overheads and make a profit. They are not charitable institutions or non-profit organisations. Just like the supermarket sells you a can of Coke for a lot more than what they paid to buy it. :wof:

Depending on the circumstances, i.e. whether the agency supplies a lot of long term temps to the company, or whether it's a short term one-off deal, the mark-ups can vary quite extensively, from as little as Ł3/hr to Ł10 or even more.

Nothing wrong with that, nor would it affect the OP or any temp, you get quoted a rate and you decided whether you take the booking or not regardless of how much the employer is paying the agency. You don't know how much the supermarket pays for their products.

Where it may affect you as a temp, albeit indirectly, is in terms of how long they are willing to keep you on board. The more the company has to pay the agency, the more concerned they will be about their budget. If they are paying the agency a lot, they may not keep you as long. :wof: :wof: :wof:

For long term 'temps' the ideal solution would be to cut the middleman and invoice directly, that would be a win-win for both the company and the temp, but obviously not for the agency, which is why they have their clauses to protect them. As ever, there are ways around those too.

[bessylu]

Re: conned

i have left and have another thanx

[Mr $quandaŁot]

Re: conned

i have left and have another thanx

Good for you!

They truly deserved it!