+ Reply to Thread
Page 1 of 3 1 2 3 LastLast
Posts 1 to 10 of 21
  1. #1

    Ddraig Goch


    Join Date
    Apr 2011
    Location
    Cymru
    Posts
    8,855
    Thanks (Given)
    88
    Thanks (Received)
    142
    Likes (Given)
    1046
    Likes (Received)
    483

    Default PS IR35 - Paystream and still use ltd instead of umbrella - VAT?

    Confused here. Apparently, if you do it this way, you have to charge vat.

    At the moment, using normal umbrella, I just fill in timesheet, umbrella processes it and lumps into my current account.

    I'm looking into payroll service instead, but, apparently, vat comes into it. OK say its 100 a day, I invoice 500+VAT = 600. Paystream get 600 off agency, deduct employer NI, employee NI, tax etc (call it 250). Do they then pay 250 (left after tax etc) PLUS the initial vat of 100 into company account? 250 of which I can pay to myself?
    Rhyddid i lofnod psychocandy!!!!

  2. #2

    Super poster

    Fred Bloggs's Avatar
    Join Date
    Feb 2008
    Posts
    4,519
    Thanks (Given)
    4
    Thanks (Received)
    60
    Likes (Given)
    34
    Likes (Received)
    210

    Default

    Why not just ask them to explain?

  3. #3

    Nervous Newbie


    Join Date
    Apr 2017
    Posts
    12
    Thanks (Given)
    0
    Thanks (Received)
    1
    Likes (Given)
    0
    Likes (Received)
    3

    Default

    Quote Originally Posted by psychocandy View Post
    Confused here. Apparently, if you do it this way, you have to charge vat.

    At the moment, using normal umbrella, I just fill in timesheet, umbrella processes it and lumps into my current account.

    I'm looking into payroll service instead, but, apparently, vat comes into it. OK say its 100 a day, I invoice 500+VAT = 600. Paystream get 600 off agency, deduct employer NI, employee NI, tax etc (call it 250). Do they then pay 250 (left after tax etc) PLUS the initial vat of 100 into company account? 250 of which I can pay to myself?
    If you are doing the payroll services path then why not do it yourself.
    I was using Paystream umbrella but found them to be useless.
    I know just do the payroll through my limited company.

    So (using your example):
    i invoice 500+VAT = 600
    The agency take off NI/PAYE and pay me the rest + the 100 VAT.

    I pay VAT at the end of my VAT period.

    I found this to be easier than having to deal with Paystream constantly.

  4. #4

    Ddraig Goch


    Join Date
    Apr 2011
    Location
    Cymru
    Posts
    8,855
    Thanks (Given)
    88
    Thanks (Received)
    142
    Likes (Given)
    1046
    Likes (Received)
    483

    Default

    Quote Originally Posted by wparkar View Post
    If you are doing the payroll services path then why not do it yourself.
    I was using Paystream umbrella but found them to be useless.
    I know just do the payroll through my limited company.

    So (using your example):
    i invoice 500+VAT = 600
    The agency take off NI/PAYE and pay me the rest + the 100 VAT.

    I pay VAT at the end of my VAT period.

    I found this to be easier than having to deal with Paystream constantly.
    Because the agency, Hays, are unwilling to do the NI/PAYE bit.
    Rhyddid i lofnod psychocandy!!!!

  5. #5

    Fingers like lightning

    Hobosapien's Avatar
    Join Date
    Feb 2016
    Location
    LA - la la fantasy land
    Posts
    780
    Thanks (Given)
    25
    Thanks (Received)
    41
    Likes (Given)
    45
    Likes (Received)
    174

    Default

    Quote Originally Posted by psychocandy View Post
    Because the agency, Hays, are unwilling to do the NI/PAYE bit.
    Probably due to how for a long time agencies have required contractors to use a Ltd rather than be self employed, so they avoid all the hassle of being the employer. Employee rights and being accountable for taxes and all that.

    Not like Hays are some tinpot company that won't already have payroll in place for their true temps.
    Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

  6. #6

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    32,078
    Thanks (Given)
    129
    Thanks (Received)
    1172
    Likes (Given)
    1595
    Likes (Received)
    5480

    Default

    You sure about going with Paystream? There seems to be a couple of posts pop up that aren't that complimentary about them. Hate for you to be pissed of with them and have to moan to us constantly about it.
    Last edited by northernladuk; 28th June 2017 at 12:02.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  7. #7

    Ddraig Goch


    Join Date
    Apr 2011
    Location
    Cymru
    Posts
    8,855
    Thanks (Given)
    88
    Thanks (Received)
    142
    Likes (Given)
    1046
    Likes (Received)
    483

    Default

    Bit dubious of using paystream but this is the only way to go ltd via the agency in question.
    Waiting to speak to them today but basically, the way it works is:-

    1. Submit invoice plus vat in the normal way.
    2. Agency pass to paystream who deduct paye and ni.
    3. They pay this PLUS the vat to limited.
    4. You pay yourself.

    Good points about this:-
    1. Paystream will pay whatever you want from the money they recieve into a pension fund of your choice (my main reason for moving away from umbrella - not many are interested in doing anything other than the minimum).
    2. It costs just 5 per invoice. (Previously, I was paying 24 a week, PLUS half fees to accountant to keep ltd going - Now its full accountancy fees plus 5 per week)

    Things not so sure about:-
    1. Paystream will only deduct PAYE as per basic rate taxpayer. Not sure if you'd have to then account for the rest monthly via ltd or just at end of year tax return? NI is a flat rate dependent on income that week isnt it so that should be ok I guess?

    2. Obviously, still need to pay accountants fees etc. Ltd has zero income now effectively. Accountant mentioned being able to claim these costs back as expenses so saving on the tax but you wouldnt save NI (because paystream paid this out already)? Confused here.

    So anyone else done similar?
    Rhyddid i lofnod psychocandy!!!!

  8. #8

    Faqqed Off

    TheFaQQer's Avatar
    Join Date
    Oct 2006
    Posts
    35,670
    Thanks (Given)
    361
    Thanks (Received)
    1208
    Likes (Given)
    3492
    Likes (Received)
    3012

    Default

    Quote Originally Posted by psychocandy View Post
    Things not so sure about:-
    1. Paystream will only deduct PAYE as per basic rate taxpayer. Not sure if you'd have to then account for the rest monthly via ltd or just at end of year tax return?
    That sounds sensible.

    Would you rather have a tax bill via self assessment at the end of the year and pay that, or overpay tax now and then have to claim that back? I'd sooner have the money in my bank and know I get the figure right, compared with someone else guessing it based on a singular point in time assumption about the work that I'll do in a year and then have to make sure it's correct in the future.
    Best Forum Advisor, 2014
    Work in the public sector? You can read my FAQ here
    Click here to get 15% off your first year's IPSE membership

  9. #9

    Ddraig Goch


    Join Date
    Apr 2011
    Location
    Cymru
    Posts
    8,855
    Thanks (Given)
    88
    Thanks (Received)
    142
    Likes (Given)
    1046
    Likes (Received)
    483

    Default

    Quote Originally Posted by TheFaQQer View Post
    That sounds sensible.

    Would you rather have a tax bill via self assessment at the end of the year and pay that, or overpay tax now and then have to claim that back? I'd sooner have the money in my bank and know I get the figure right, compared with someone else guessing it based on a singular point in time assumption about the work that I'll do in a year and then have to make sure it's correct in the future.
    Yep fair enough. I just wasn't sure whether legally you were allowed to do it this way.

    Otherwise, in perm employer could do the same. Tax you on basic rate allow you to stick the rest in bank account for few months which would be nice. Surely not allowed?
    Rhyddid i lofnod psychocandy!!!!

  10. #10

    Ddraig Goch


    Join Date
    Apr 2011
    Location
    Cymru
    Posts
    8,855
    Thanks (Given)
    88
    Thanks (Received)
    142
    Likes (Given)
    1046
    Likes (Received)
    483

    Default

    Paystream to be fair are totally crap. Completely clueless. Depends which person you speak to you get a different answer.

    I thought it was all sorted at 5 per invoice but now apparently its 0.75% - bit of a difference!

    To be honest, I'd can them but I'm keen to get away from umbrella and back using ltd. And these are the only ones agency will allow.
    Rhyddid i lofnod psychocandy!!!!

+ Reply to Thread
Page 1 of 3 1 2 3 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.