Company wants to pay me gross (£150k+)

[MrMarkyMark]

Many thanks for all the comments - first time I've posted here so I appreciate your help.

To clarify a few points.

This situation is definitely not IR35 friendly. The contract refers to employee throughout and holidays are paid for plus there's a single place of work.

There seems to be a slight benefit with "Sole Trader" according to some online calculators I've used (listetotaxman and hmrc)

£150k on paye nets £90176

£150k as sole trader paying class 2 and 4 NI nets £91137

Furthermore, there may be some legitimate allowable expenses I could get away with.

I've also looked at potential short term investments as I'll be sitting on approx. £25k every six months before it's due to be paid across to HMRC although it only seems to be ISA's that are of Any use but the return is minimal based on how low interest rateS are and the deposit limits.

Anyway, I was having wild dreams along the lines of US company paying into an offshore account in Panama blah blah...

Cheers anyway,

1970.

Problem solved

[WordIsBond]

Many thanks for all the comments - first time I've posted here so I appreciate your help.

To clarify a few points.

This situation is definitely not IR35 friendly. The contract refers to employee throughout and holidays are paid for plus there's a single place of work.

There seems to be a slight benefit with "Sole Trader" according to some online calculators I've used (listetotaxman and hmrc)

£150k on paye nets £90176

£150k as sole trader paying class 2 and 4 NI nets £91137

Furthermore, there may be some legitimate allowable expenses I could get away with.

I've also looked at potential short term investments as I'll be sitting on approx. £25k every six months before it's due to be paid across to HMRC although it only seems to be ISA's that are of Any use but the return is minimal based on how low interest rateS are and the deposit limits.

Anyway, I was having wild dreams along the lines of US company paying into an offshore account in Panama blah blah...

Cheers anyway,

1970.

Several thoughts:
1. You've reinforced my view that sole trader is the way to go.
2. Good thought to note that you may be able to take some expenses as a sole trader but not as an employee. But I'd be careful here, personally. HMRC is likely to have the employer, rather than you, in their sights if they go after this. You are the "victim", they are the "oppressive company taking advantage of you to dodge Employer NI." But if it looks like you are taking the mick with your expense claims, then they could decide this was collusion between you and the company to avoid tax. So I'd recommend caution.
3. The big savings here is the company's -- the employer NI that is being saved. Maybe that savings is built into your compensation, and they are paying a higher amount for the privilege of dodging NI. But I don't see how they get away with it when Hector comes calling.
4. I'd look into 90 day notice accounts for your savings, that might be the best you'll get. The interest isn't going to make you rich, but it is free money, after all.

[ASB]

What is not clear, and may be relevant is the relationship between us co and the co. It is possible, but not particularly likely, that the us co is not required to operate paye etc. There is ibformation on this and the circumstance on the gov hmrc webtulipe.

It is also further possible that as a result no employers ni liability results.

Beung self employed is not a matter of choice - even if put forward as such. It is a matter ofcthe facts of the case. From the description it seems unlikely to be genuine self employent.

Though the risk of a failed status enquiry would generally fall on the next link up the supply chain.

There is absolutely nothing wrong with getting paid offshore. Just ensure it is properly declared.

[Snarf]

It sounds a bit fishy to me that (by what you have said about the contract) you will be an employee of the UK based Ltd but that they will not be operating a payroll... I didnt think UK based employers had an option to opt out of PAYE for their employees.

The first thing I would do is ask them to clarify (Subject to how well the recruitment process is going obvs) then (and I know this sounds radical) call HMRC and ask for advice (you dont need to give a name if youre worried), they are not the cash stealing beast that everyone seems to think, they just want things done right and for you to pay the right amount of tax...

Better to get the advice directly from the horses mouth than get screwed over a mistake in a few years!

At the very least find a professional who understands the situation and can advise accordingly.