Umbrella Companies

[maxima]

some people are INSIDE IR35 so don't need to go Ltd.

can someone please explain what is the point of contracting under IR35?

[Back In Business]

Oh very dear. You don't even have to search for this one it's a sticky: http://forums.contractoruk.com/thread7487.html

[maxima]

certainly I saw that article.. But it still gives me no clue why someone is willing to pay twice more tax?

is it purely because they are afraid [subjective] of 'legal stuff' what involves your own ltd?

or (that was my question) are there some specific activities (different than IT contracting/consulting) which makes PAYE solution truly [objective] attractive?

thank you

[tim123]

can someone please explain what is the point of contracting under IR35?

An hourly rate of twice what I would get as a perm.

tim

[Back In Business]

certainly I saw that article.. But it still gives me no clue why someone is willing to pay twice more tax?

is it purely because they are afraid [subjective] of 'legal stuff' what involves your own ltd?

or (that was my question) are there some specific activities (different than IT contracting/consulting) which makes PAYE solution truly [objective] attractive?

thank you

If you run your own limited and are inside IR35 you will still make more than a) using a brolly b) being a permie. The level paperwork/legal stuff should be irrelevant.

PS. If that response missed the point, it's probably because I don't understand your question. My apologies in advance.

[pisces]

Except to keep more of your money, even inside.

[maxima]

If you run your own limited and are inside IR35

may be this is my shallow experience. i hadnt had a contract inside IR35. i surely will refuse such a contract. i think it is more effective to wait for another contract than do anything inside IR35.... just cant envisage what could make me take such a contract..

[Back In Business]

may be this is my shallow experience. i hadnt had a contract inside IR35. i surely will refuse such a contract. i think it is more effective to wait for another contract than do anything inside IR35.... just cant envisage what could make me take such a contract..

I agree - but at the moment there is a lot of work around and many of us can afford to be picky about the work we take on. It hasn't always been like this (2001-2003 for example) and then you just have to take whatever you can get.

[maxima]

Yeah sorry to draw you into this useless conversation.. it just lack of experience of mine....

perhaps there are a lot of different situations out there....