Higher Take Home Pay Claims
Have you been offered higher take home pay through one company over an other?
If you are a contractor, we would pretty much guarantee that at some point you have come across a company that is claiming you can take home more pay with them than an other?
Quite simply, if you want to stay on the right side of HMRC, then this isn't possible. Providing the information that you are comparing between umbrella companies is the identical, then the only difference you will see is the margin charged by the umbrella.
If you have any experiences from companies making these claims, let us know how they say they can achieve this and still keep you safe from investigation from HMRC.
Hi, I was advised by Darwin Pay that they would pay me minimum wage and the rest would be paid as a company loan, which is linked to a pension scheme in my name so if they were ever to recall it, this would then go back in my pension and I could draw from there? Sounds too good to be true as they are offering 83% take home.
I'd be interested in your thoughts.
I used one of the schemes mentioned in the newspaper but they never promised me 'take home' of over 85%. That's not how it works. My take-home pay is a small fraction of the contract value. Naturally, in order to live, I do need much more money than that, but the rest is borrowed. It's the borrowings that take it up to 85%. (Well, 87% actually.) When I eventually pay it back, the money goes into a pension fund shared amongst many people, and I'll be paid a pension which there will be tax on. Or, I might die before I pay it back (which it my age is a distinct possibility!) I'm not sure what happens in that case but since I have no family it doesn't really matter.