Tax / contracting / umbrella companies / numbers

j funk

.co.uk
I'm currently contracting and a lot of people have told me I can get much more money under an umbrella scheme as opposed to PAYE.

I've contacted one and they've sent me their figures. On £128 a day they say I'll net £465 p/w. They are calculating this on the correct tax rate and their fee is £17 p/w. That doesn't make sense / seem worth it to me.

Say tax and NI = -30%, that put me on £448, on PAYE.

This is basically a waste of time isn't it? I imagine people only benefit from claiming fraudulent expenses.

I want to figure this out ASAP so I can accept / reject the contract online. They're not open now and my consultant explained everything really badly earlier. Can someone explain the 'basic salary' deduction?

Figures below:

tax.jpg
 
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