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Umbrella scheme

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JimmyCooper | 12:51 Fri 15th Jul 2011 | Business & Finance
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Umbrellas for all?
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Sorry

My other half works full time through a agency. The agency have written to her advising her that she must be paid through their umbrella scheme. I know the basics of how such a scheme works but am just concerned that her business milegae is very low (less than 50 miles a week) so she is unsure as to if she will actually be better off each week once the admin fee has been paid.

She has contacted the scheme for an illustration but they are halfwits and havent been able to advise her
I can't see what your question is, Jimmy.
Nor can I work out what the relevance is of the 50 miles a week figure for business mileage .
Factor - he's alluding to the fact that one loses a percentage of the income, deducted by the administrator of the umbrella scheme versus the mileage to work being able to be claimed as a 'business expense'. Very obscure, I agree.
JC - I doubt your other half has any choice in the matter if that is the way the organisation has decided to work. She is regarded as a temporary employee of the agency now, one presumes?
Question Author
Thanks for your answer builders mate.

She is an employee of an agency and they have said that she must swith to the umbrella scheme.

The point I was making factor (which I can't see how you would find it baffling) is as a rule of thumb would you be better off moneywise with such a scheme. Like I posted her expenses are zero and very minimal mileage - offset this against the umbrella companies admin fee and would she be better off?

She has rung the number that the umbrella company have proved for an illustration of how it would effect her moneywise and they won't respond - hence me wondering why.

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