what is mean by An umbrella company ?

  • I am going to get an offer from an umbrella company.It is a contract job. Contract will be for 6 to 12 months.

    Please let me know Whether it is good offer or not.As i need to shift from my country to UK,I don't have any idea about UMBRELLA Company.

    karthik

  • Hi,

    It really depends what you mean by working for an Umbrella company.

    If you are working under an Umbrella company, what this means is that you are a "ShareHolder" with in a company that has a director and as a contractor this allows you to save money on tax when working in the UK.

    I hope this brief example helps.

    Thanks

    Chris

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  • Thanks.

    They will give `480 perday and for administration(like accomadation etc.,)they will take `350 per month.

    please give me your feedback.

    karthik

  • £480 per day is an excellent rate for a first-time contractor, so congratulations! £350 per month is a lot for an umbrella company to take, so take the time to look at a few others. You should be paying around £100, I'd say. Tax rules in the UK are very complicated, so get an accountant to tell you whether your contract is covered by IR35 rules. If it isn't, you can save a lot of tax by setting up your own company.

    John

  • It's in Euro's not in Pound's.

    Please give me your feedback.

    karthik

  • Karthik

    If you're working in the UK, you'll be paying your umbrella company fees in pounds. As I said, you shouldn't be paying more than about £100 per month. There's about 1.3 euros in a pound, so your daily rate works out at about £350 - still an excellent rate for a first-timer.

    John

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