Umbrella company recommendations?

[GwinCoch]

Hoping for a bit of advice re. a short term contracting role I am interested in working for a company closely connected to the UK Government. The day rate is fairly decent and I only have to be in the office one day a week, for four months. As part of the pre-employment checks they have asked if I am happy to be paid via Umbrella and, if so, which one. I’ve paid my own tax in previous roles but can see the benefit of going via an Umbrella, particularly given then fact that the role might only be shorter term. Do you have any Umbrella recommendations? Is Pendragon any good? Thanks so much, slightly new area for me and I want to be amenable and don’t think they would have asked the question if this wasn’t their preferred way to manage payment. TIA.

My DH goes through an umbrella - optimises his tax by salary sacrificing into a SSIPP pension. If doing this, check if the umbrella accepts payments to your provider - or they even offer this facility.

@AnotherOneGone thanks for this, it’s very helpful. All of my pension is stored privately (apart from what I will get from the state - definitely not wealthy!) but it’s a good question to ask which I hadn’t thought of. Cheers!

Danbro are one of the best, if not the best umbrella. If you search, you'll find there are other threads on this subject but Danbro was highly rated and the only one that there was nothing bad said about (including by someone who works in the umbrella company field).

That’s fab, thank you. Will drop them a line for an estimate. Really appreciate it.

I've used them several times myself in the past. They're specialists in contractors (both PAYE and Ltd co). Very reliable and highly rated.

There are some very dodgy umbrellas around (I found out the hard way when I was too young to know better). I've been surprised my friends who've used umbrellas that are clearly breaking the law - and putting my friends at risk if HMRC come knocking.

You’ve literally nailed on the head the thing I was most worried about. The IRC35 rules came in while I was out of the country so am making sure I am doing everything right. I definitely need good specialists who are happy with a potentially short term contract but with longer term implications. Cheers!

IR35 where did the C come from? Probably from crapping myself a bit as definitely don’t want to do anything dodgy or wonky where tax is concerned.

Danbro used to have some fairly lengthy guidelines they shared about what you can and can't do re IR35. I'm sure they still do. I started out my career in accountancy so am very 'by the book' with things like that too.

I was appalled at the advice a different umbrella was giving a locum doctor friend of mine. Complete breach of IR35 and my (now ex-) friend didn't seem bothered at all.

Although if you're under an umbrella, you'll be PAYE anyway (unless things have changed dramatically - I've been perm for the last 3 years) so IR35 won't be an issue.

It’s definitely within IR35, I just need to really wrap my head around what it means. I’ve taken a year off work to do a Masters and have only been back in the UK for just under a year, so properly need to get myself back into it all. I am totally with you, I don’t understand how people couldn’t give a crap about tax. Apart from the illegality, there is the moral issue too. As I said, I am definitely not wealthy, but there is no way I would entertain the idea of doing anything off book or otherwise untoward. I’ve sent Danbro an email - thank you so much!

@GwinCoch When you're within IR35, you're effectively considered an employee of the end client so you need to pay PAYE etc. That's why they're asking you to use an umbrella. You'll be an employee of the umbrella paying PAYE. You don't need to worry about IR35 as you'll be complying with it.

If you were working through your own limited company, that's when you need to really pay attention to IR35.

And welcome back to the UK and the wonderful world of employment and tax law @GwinCoch ! 😝

Ah that made me laugh out loud and I really need it! Thank you!! That’s brilliant! 😂😂😂

(This is partly why quite a few companies insist contractors use umbrellas instead of limited companies now - mitigates any IR35 risk)

Yeah and I meant to say it’s definitely PAYE, that’s the one thing I do know as they asked for my NI number. All of this and still have yet to speak to the recruiter - she’s giving me a bell tomorrow - fingers crossed! Would be a great role to take me through to the end of the year having spent all my savings on my Masters!

That was my first thought, showed good signs of credibility by the employer. I’ve only once done a job when I paid my own tax and it was a bit of a roller coaster trying to navigate my way through it all. Much prefer to know income tax and NI is covered off before anything hits my bank account.

Good luck! I hope it works out well for you. The job market is so much better this year than the last few years so I'm sure you'll find plenty of work, one way or other. Enjoy that first pay packet!

My top tip is download Sigala's Just Got Paid for that first payment. I still remember dancing around Westfield to it when my first month's money hit my bank account after 12 months of no income. It was just fabulous! Enjoy! 😘

Ah thank you, that’s so lovely! I’ve been a bit jittery having been officially out of work for a year - albeit with a productive, good and self-determined reason! But with all the doom and gloom around unemployment and the economy I almost talked myself into a bit of a negative viewpoint, thinking: “They’re not going to want me, I’ve been out of work and there are people better… “ usual stuff really. But I started looking yesterday and had a nice call with a recruiter this morning for one job and then this afternoon had a proper look online and emailed another recruiter and she sent me over all the stuff to sign up, is calling me tomorrow and has already said: “You’re exactly what they are looking for!” I mean, I know that is her job and I am not naive, but if this worked out it would be literally perfect. Fingers crossed!

Oh wow - good call song-wise I love it! Although I have just about been able to put myself through uni again with my savings, it has been so hard to adjust to nothing coming in regularly and although I can budget, when your account is just going down, down, down it’s a bit of a mind whirl! I cannot wait for that first salary payment again! Whoo!

It'll all be fine I'm sure, and you too will be dancing round when you get that first pay :-)

You’re so lovely, thank you. If it comes off and you are ever in the South Wales area I will buy you a drink and put that song on the juke box! X

Ha ha, if I'm ever in South Wales and hear that song playing, I'll be looking around for you 😛

Paystream are excellent and they are adept with government contractors. I'm with them currently.
Sapphire and ICS also.

I will be here - Newport or Cardiff… if I get the job! 😂

Thank you very much I appreciate it. The first place I went was Trust Pilot and those rated highly too. But it’s so much better to get personal recs I find!