Agency v Umbrella v LTD

[DonkeyRhubarb]

If you are inside IR35 then there may not be much difference.

If you want to claw some of the tax back, you might want to consider contributing to a pension (eg. SIPP).

[Bluebird]

Don't forget if your LTD and on FRS, that can also make you a bit.

Based on your sums Invoice 66k,
Invoice +VAT = 77550

Pay VAT FRS @12.5% of that = 9693

Total Profit = 67857.

The VAT man has gifted you £1857 for making his job easy....

[NotAllThere]

I would imagine I would be inside IR35. How is the calc carried out in this instance?

I would expect the first contract to be 3-6 months.

Thanks.

There are advantages to being ltd even within IR35.

1. You get the 5% allowance.
2. It only applies contract to contract. Your next contract may be (will be, because you'll be seasoned pro at negotiating ) outside IR35.
3. YOU are in control of your money, not some 3rd party
4. FRS

[sidknows]

Quote:
Originally Posted by lambrini_socialist
dunno about agency PAYE but umbrellas pay about 58% and a Ltd will pay around 75 - 80% depending on how you run it. strongly suggest you spend more time reading and researching though or else you might get flamed.


I know of no contractor using umbrella's who get 58%
The norm is between 65- 70 %

The dodgy ones will obviously pay more

[NotAllThere]

Are there any umbrellas that pay you just under the higher tax bracket, retaining the extra to pay you when you're taking time off, on the bench, or once you retire etc.

That would raise the percentage.