Using my Ltd as my Umbrella

[mikel]

Hi,

I don't see anybody specifically asking about this in the forum, so I'll brace myself and go for it.

I'm checking new contracts and there's quite a few inside IR35 offers.
A few allow me to choose whichever Umbrella I want.

I already have a Ltd, so I'm wonderign why I would give any money to an Umbrella.
Could I just use my existing Ltd and withdraw all income received from inside IR35 contracts as salary, paying the corresponding PAYE?

Cheers all!

[jamesbrown]

You are massively overthinking this. It's perfectly possible, if your supply chain is agreeable, to have your company receive a deemed direct payment from your Fee Payer, after which you can pay out the money as either dividends or salary without further deduction of tax, because the deemed payment is net of tax. However, the difficulty is that it makes no sense for your supply chain to do this. That said, it makes a lot more sense that what you're proposing, which is essentially impossible and, incidentally, the last budget made supply chain compliance even more important

[malvolio]

Also, among a lot of other things, YourCo would never pass the credit and monetisation requirements for a client's supplier list...

[northernladuk]

Even if it is possible, you've zero to no chance of getting on their supplier list. It's bad enough having the standard list of big names that give kickbacks because agents won't accept the smaller ones even if they are FCSA regulated. Chance of you getting your one man band passed their onboarding is nil. You pose a risk to them and have none of the controls or accreditations a proper one has.

[gables]

Maybe I'm just slack; but is it even worth pursuing, even if it was possible which let's face it isn't, to save what £100/per month?

[mikel]

Maybe I'm just slack; but is it even worth pursuing, even if it was possible which let's face it isn't, to save what £100/per month?

My only previous Umbrella experience was with one that was the only option the client would accept and charged a percentage, and it was enough money to care about. This new client doesn't care about which Umbrella to use at all.

Your comment made me check, though. Didn't know there were fixed-fee ones and they cost about £100/month... so indeed not worth the trouble.

Thanks, mate!

[jamesbrown]

You should go with Clarity Umbrella, lucyclarityumbrella. Lucy, the MD, is a regular poster here and they have universally positive feedback, AFAIK. No affiliation.

[mikel]

You should go with Clarity Umbrella, lucyclarityumbrella. Lucy, the MD, is a regular poster here and they have universally positive feedback, AFAIK. No affiliation.

I've seen lots of good references to it in this forum.

I went to check their services the other day and I noticed 2 things:

1. The massive notice at the top of the page makes me think they stay on top of thing. Apparently finishing at 3pm on the 13th of December is actually something noteworthy.
2. Their fee is "hidden" in FAQ?: "£25.00 for a weekly payment and £95.00 on a monthly basis". Unless I missed it elsewhere, not sure why they'd bury there.

They'll probably be the first option I try.

[youngguy]

I've seen lots of good references to it in this forum.

I went to check their services the other day and I noticed 2 things:

1. The massive notice at the top of the page makes me think they stay on top of thing. Apparently finishing at 3pm on the 13th of December is actually something noteworthy.
2. Their fee is "hidden" in FAQ?: "£25.00 for a weekly payment and £95.00 on a monthly basis". Unless I missed it elsewhere, not sure why they'd bury there.

They'll probably be the first option I try.

1. Many brolly 'employees' get paid weekly and on a Friday. The timings of pay runs and submitting of timesheets means this is significant (for some) to ensure they get paid.

2. If you use the calculator the margin is clearly listed. Most umbrella co websites do it this way as the first thing someone wants to do is plug in their income and see what take home they get.

Nothing untoward at all. I've not used Clarity due to my PSL, but if I could - I would.

[fatJock]

+1 for Clarity, have used them for a couple of inside roles and they're brilliant. No issues, always very responsive - have recommended a few people and they've had the same experience.