Oh dear. Looks like OP has been told a few porkies by the umbrella....
Never done umbrella but surely you're losing tons by having to pay NI (employers and employee) and tax PLUS umbrella cut (as opposed to ltd)?
It seems a lot of people on the lower rates seem to go for this but it seems that a low daily rate becomes an even lower in pocket rate if you go umbrella? Even if you're inside IR35 you're worse off.
I know there are reasons why some prefer umbrella but surely ltd is the way to go long term at least?
For instance, I pay zero NI - either employer or employee just tax, splitting income with partner so no 40% tax, so probably bringing in just over 80% of gross.....
Never done umbrella but surely you're losing tons by having to pay NI (employers and employee) and tax PLUS umbrella cut (as opposed to ltd)?
It seems a lot of people on the lower rates seem to go for this but it seems that a low daily rate becomes an even lower in pocket rate if you go umbrella? Even if you're inside IR35 you're worse off.
I know there are reasons why some prefer umbrella but surely ltd is the way to go long term at least?
For instance, I pay zero NI - either employer or employee just tax, splitting income with partner so no 40% tax, so probably bringing in just over 80% of gross.....
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