Newbie: PayStream the options

[DS23]

is it?

[davedave]

I just asked them what the difference was between a "normal" umbrella and the paysafe thing and it's quite simple (I think)

Normal umbrella = paye but tax relief on expenses , weekly fee

Paysafe = paye but tax relief on expenses , no weekly fee.

The reason you become a director under paysafe is to enable you to register for flat rate VAT, they keep the rebate as their fee which is why they don't charge you. I only have about £70 of expenses so get charged a fiver a week.

Early days with them but they seem OK so far

[Beefy198]

Why would YOU have to become a director to register for flat rate VAT??

You might think it sounds simple, but that just raises more questions than it answers.

[davedave]

Why would YOU have to become a director to register for flat rate VAT??

You might think it sounds simple, but that just raises more questions than it answers.

Sorry but its VERY simple. If you're turnover is above £660k (I think, or somthing similar) you can't use the flat rate scheme, which is why you have your own company as you obviously have a lower t/o than pay stream

[Beefy198]

How do you think most umbrella companies do it?

They obviously find it VERY simple too.

[davedave]

How do you think most umbrella companies do it?

They obviously find it VERY simple too.

They don't register you at all for flat rate vat as far as I understand it, so not sure what your point is.

Thats why they charge a weekly fee. I was offered the normal umbrella by paystream but the paysafe option gives me more take home, and is compliant, so a no brainer really

[DonaldG]

Sorry but its VERY simple. If you're turnover is above £660k (I think, or somthing similar) you can't use the flat rate scheme, which is why you have your own company as you obviously have a lower t/o than pay stream

The limit for Flat Rate Scheme - is £150K of turnover so just slightly out. £660K used to be the cash accounting limit, but this is now £1.3M

[davedave]

[QUOTE=DonaldG;710363]The limit for Flat Rate Scheme - is £150K of turnover so just slightly out. £660K used to be the cash accounting limit, but this is now £1.3M[/QUO

Thanks, just a bit out

Even more reason why the umbrella company can't do it though.....

[MPwannadecentincome]

I was offered the normal umbrella by paystream but the paysafe option gives me more take home, and is compliant, so a no brainer really

How does the paysafe option give you more take home and yet still be compliant?

[davedave]

How does the paysafe option give you more take home and yet still be compliant?

They don't charge a weekly fee, you only pay 10% of any expenses processed, up to a maximum of £50. First £20 is free, so if you process £60 you only get chrged £4