Umbrella or direct through client PAYE

[Tester]

Been deemed inside IR35 and my natural assumption was I'd setup an umbrella company but my client has said they will pay me through their payroll directly. Is this good or bad?. I'm thinking it would avoid umbrella fees and employer NI but not sure on the downside?.

thanks in advance

[northernladuk]

Get them to send you a detailed break down of the pay and then go speak to Clarity Umbrella and get the same and compare.

One main area where the brolly may trump the agent is pensions. If you can you want to be using pension payments to bring the tax liability down as much as possible.

Depends on your circumstances so get clear information on each of the offering and then chose the elements that suit you best.

[northernladuk]

This has been asked a lot though so the Google search method is your friend.

Here is an example but you can play with the search terms.

https://www.google.com/search?q=umbr...hrome&ie=UTF-8

[eek]

Been deemed inside IR35 and my natural assumption was I'd setup an umbrella company but my client has said they will pay me through their payroll directly. Is this good or bad?. I'm thinking it would avoid umbrella fees and employer NI but not sure on the downside?.

thanks in advance

Reasons for using an umbrella - if you want to put a lot (say £2000+ a month) into your pension at which point the umbrella fee is easily outweighed by the extra employer NI payments going direct into that pension pot.

Except for that umbrella's add a risk for zero real benefit.

If you are on agency / client PAYE remember to use your holidays and claim them (they won't be paid in advance as a lot of umbrellas work).

[Tester]

Thanks all, this isn't through an agency I'll be contracted too and paid directly by the client