Redundant on JSB, considering contract wk, recruiters suggest Umbrella Co: Tax & SW?

[Flake]

I'm not sure where this post should go, sorry if it is in the wrong place.

I was made redundant a couple of months ago and have been on JSB.

I have been looking into some contract work and it has been suggested by recruiters that the best thing to do is set up with an umbrella company. I'm not sure how these work. My main concern is the contract I am looking at is a short contract of 3 months and when the job finishes I won't be able to claim SW. Does anyone know if this is the case.

I have also been told that I can claim tax relief on mileage etc. How would this work? I'm finding it very hard to work out the figures of what my take home pay would be.

Thanks for your help.

 

[ajapale]

Moved from Work, Careers, Employment rights, to Redundancy, Unemployment & Jobseekers which is the part of AAM which deals with this type of Question.

 

[mmclo]

MIght be worth considering back to work allowance where you can keep a lot of your sw and do some work as an option