Currently a sole trader agent says I need to operate through a umbrella or ltd co.

[malvolio]

And you arrive at that figure............................................ ...........????

Average return on gross via Ltd Co roughly 75%

Average return on full PAYE roughly 62% unless you have silly expenses.

Cost of the latter vs the former actually 17% so 20% is a bit pessimistic. The basic point still stands though...

[LisaContractorUmbrella]

Average return on gross via Ltd Co roughly 75%

Average return on full PAYE roughly 62% unless you have silly expenses.

Cost of the latter vs the former actually 17% so 20% is a bit pessimistic. The basic point still stands though...

75% inside IR35 - you sure Mal?

[malvolio]

75% inside IR35 - you sure Mal?

Don't understand... What is this "Inside IR35"?

Seriously, even if you manage to get yourself inside IR35, which takes a bit of doing these days, you are still slightly ahead with a Limited than you are with a brolly, but it's pretty marginal.

[LisaContractorUmbrella]

Don't understand... What is this "Inside IR35"?

Seriously, even if you manage to get yourself inside IR35, which takes a bit of doing these days, you are still slightly ahead with a Limited than you are with a brolly, but it's pretty marginal.

So the 20% quote was not the most accurate of your career then Agreed you would be slightly ahead through a Ltd but I cannot agree that you would be hard pushed to fall inside IR35 these days - what makes you say that?

[prozak]

75% inside IR35 - you sure Mal?

ahhh... the old IR35 scare tactic...

Is that the basis of the majority of your customers Lisa? Are most of them just scared IR35 submissives?

Seems like a crazy reason to go for Umbrella.

[LisaContractorUmbrella]

ahhh... the old IR35 scare tactic...

Is that the basis of the majority of your customers Lisa? Are most of them just scared IR35 submissives?

Seems like a crazy reason to go for Umbrella.

Nope Prozak the basis for the majority is simply that they don't want to run a Ltd Co.

[TestMangler]

So the 20% quote was not the most accurate of your career then Agreed you would be slightly ahead through a Ltd but I cannot agree that you would be hard pushed to fall inside IR35 these days - what makes you say that?

That's a bit rich coming from someone who fairly regularly tells people they are 'IR35 caught' if they ask a stupid question about contracting

[prozak]

IR35 calc output. 7072 salary. 500 a day 46 weeks a year. all other settings standard.

--
Your current net monthly income is £6,496.

If you get caught by IR35, this decreases £1,391 (21%) to £5,104

--

I think Malvolio might have been spot on.

What would the contractor get in an umbrella situation Lisa?

[LisaContractorUmbrella]

That's a bit rich coming from someone who fairly regularly tells people they are 'IR35 caught' if they ask a stupid question about contracting

Just playing the odds TM, just playing the odds

[prozak]

Just playing the odds TM, just playing the odds

I thought he was talking about Malvolio.
but then he quoted you.

Malvolio loves calling people a permie if they don't know all the tax legislation by heart, backwards, forwards and sideways.