Consequence of taking a contract that's 'umbrella only'

[millsn]

There's an attractive contract that's umbrella only. I think that means they have say so over my process, my tax, the amount and timing of holiday. My last contract was with another client. This would be with one new to me. Does taking an umbrella only contract risk prior contracts being considered inside? I'm baffled.

[NotAllThere]

@NLUK - just walk away. Nothing to see...

There's an attractive contract that's umbrella only. I think that means they have say so over my process, my tax, the amount and timing of holiday. My last contract was with another client. This would be with one new to me. Does taking an umbrella only contract risk prior contracts being considered inside? I'm baffled.

So, you don't know what an umbrella only contract entails. You don't know what "inside" entails.

Tell me, how long were with your former client and how exactly was your contract with them arranged?

And what do you mean by "inside"?

[jayn200]

Is it in public sector?

Anyway IR35 is assessed on a contract by contract basis. So it should theoretically have no impact on your prior contracts.

As far as what they have a say over, i mean that isn't so much about inside/outside but more about what's in your contract.

[Lance]

There's an attractive contract that's umbrella only. I think that means they have say so over my process, my tax, the amount and timing of holiday. My last contract was with another client. This would be with one new to me. Does taking an umbrella only contract risk prior contracts being considered inside? I'm baffled.

Right now? With the current climate? Take any job you can.

[northernladuk]

@NLUK - just walk away. Nothing to see...
?

Spoilsport....

[millsn]

Is it in public sector?

Anyway IR35 is assessed on a contract by contract basis. So it should theoretically have no impact on your prior contracts.

As far as what they have a say over, i mean that isn't so much about inside/outside but more about what's in your contract.

ok thank, that's a helpful reminder

[LondonManc]

Sounds like this section of reading could be worth it to you over the long weekend:
First Timers Guides - for IT Contractors | Contractor UK

While some of it you know and can skim through, sounds like is plenty for you to go at, even though you're not a first timer.

Basics: you'll be offered a contract. It could be operated through an umbrella or through your limited company. It could also fall inside or outside IR35, giving four different permutations. Inside IR35 means being taxed like a permie and as a result, you should get the money paid straight into your personal bank account because that's your money. As such, an umbrella will do that for you - for a fee. Accept the monthly processing because the fee generally works out a fair bit less than weekly, especially if you've credit-checked them and all is good. Outside IR35 contracts are where you submit an invoice (+ VAT if appropriate) and are paid into a company bank account. Get your accountant involved to minimise the tax take - consider things like retaining profit, etc.

Long and short of it, contracts are hard to come by at the moment - a PAYE-taxed one beats a non-existent one.

[Andy Hallett]

I don't believe there is any issue. Roles are portable. In fact you could actually argue that you act as employed for roles that would be seen as such (umbrella) and use your PSC for roles that are genuinely as an independent consultant.

If any of my roles were inside I'd do that (and charge 50% more)