Umbrella Company - pay stoppages

[Ali C]

Hola!!

OK another newbie question for you guys............I am on my first contract, week 8 and for speed I just went with Umbrella while I found out all the options re Ltd etc. (which I am still finding pretty difficult - some say just go outside IR35 and do Ltd and some have told me no way out of IR35 if only working for 1 company at a time?)

I think I have come to the conclusion I will get a good accountant and go Ltd just for the control factor (can anyone recommend a good contract accountant in Reading area?)

In the meantime I have a question re my salary stoppages ......Tax/NI/ERNI is currently around 42%? Umbrella quoted less when I rang them originally, by a considerable amount and now I am 'in', so to speak, I feel I am being hammered. They are 'looking into it' as they couldn't explain why when I rang them! Is this about Norm for Umbrella stoppages.......hence most people seem to go Ltd??????

Any advice (and apparently newbie slating?) pleeeeeeease

Muchas Gracias

[VectraMan]

If you earn more it'll get closer to 50%.

It's tax. It doesn't matter what an umbrella might tell you. It isn't up to them; you have to pay tax on your income at the rate set by the government.

[Ali C]

I get that about the tax, I was just tryin' to guage whether 42% was excessive - I guess not then.

Better get my Ltd sorted soonest then.............

Thanks

[NotAllThere]

...and some have told me no way out of IR35 if only working for 1 company at a time?)...

For reasons often and widely discussed in many places, this is ENTIRELY testicular.

hth

NotAllThere

[max]

and some have told me no way out of IR35 if only working for 1 company at a time?

Just so you are clear....and hopefully you never propagate this false statement to your buddies.

THIS IS WRONG.

I guess this is what "this is ENTIRELY testicular." means..but just so you get the message.


Whoever told you this...owes you a lot of money...the money you've just flushed away.

[Peter Loew]

Why, his Umbrella company told him this, of course...

[VectraMan]

I get that about the tax, I was just tryin' to guage whether 42% was excessive - I guess not then.

13% employers NI, 13% employees NI up to the threshold, and 22%/40% income tax.

Whether that's excessive is a whole different question.

[Ali C]

......it was actually some consultant who professed to be an expert on these things.............but seeing as he didn't appear to be an expert on anything else he was professing at the time, I should guessed......doh!!

............and I am a 'she' Ali not a 'he' Ali if anyone cares

[NotAllThere]

Ali, son, no we don't care.

[Bluebird]

although being female will probably get you a whole lot more help than if you were a bloke.....

Ps - Go with SJD Accountacy.