Which umbrella - OrangeGenie vs Parasol

[TheBigYinJames]

I have a spare room in my house. Now I *could* rent that out. But I choose not to. In purely financial terms, that looks foolish, I'm losing a substantial amount of income. But not everything in life is about finance. Maximising income is not my primary goal in life. If at some point I really need the money, I have the option of renting it out.

It's the same thing for me with the brolly.
Hope that explains my position a bit better.

[original PM]

There are lots of things we could do to earn more money.

What the LTD brigade are saying is that using a LTD gets a better return for the amount of time invested.
Is this also the case if caught by IR35 and therefore not going down the minimal wage/dividends route or if caught by IR35 would you expect similar return to a brolly?

I do agree this thread (and many other threads about which brolly to use) get hijacked and turned into A 'use a LTD you muppet thread'

What people have to realise is that many many many contractors now have no choice but to use a ltd or brolly as agency no longer offer PAYE solutions.

This applies to people on 1st line support etc who may actually want a permananet job but take temp/contract as it is all they can get.

They come to this forum ask a fairly sensible question and get harranged for not even considering a ltd.

I think some of the more experienced on here should take a step back before making any posts and actually consider the audience - sometimes you wade in and just confuse people.

Which does devalue the forum somewhat.

[lambrini_socialist]

not everything in life is about finance. Maximising income is not my primary goal in life.

are you some kind of weirdo?

[TheBigYinJames]

are you some kind of weirdo?

Hippie perhaps. And although I make a good living, there's enough of the red Clydesider still left in me that I don't mind contributing something towards the public purse for the greater good. So being inside IR35 suits me on an ethical level too, but that is a personal viewpoint and I'm not haranguing anyone who has a different viewpoint.

That does mean I rub up against the Toryboys at bit, but then that's the fun

[lambrini_socialist]

Hippie perhaps. And although I make a good living, there's enough of the red Clydesider still left in me that I don't mind contributing something towards the public purse for the greater good. So being inside IR35 suits me on an ethical level too, but that is a personal viewpoint and I'm not haranguing anyone who has a different viewpoint.

That does mean I rub up against the Toryboys at bit, but then that's the fun

i knew it.

infidel!

pervert!

enemy of the free market!

GET HIM!

[TheBigYinJames]

i knew it.
infidel!
pervert!
enemy of the free market!
GET HIM!

17.5inch biceps. Come ahead

[malvolio]

There are lots of things we could do to earn more money.

What the LTD brigade are saying is that using a LTD gets a better return for the amount of time invested.
Is this also the case if caught by IR35 and therefore not going down the minimal wage/dividends route or if caught by IR35 would you expect similar return to a brolly?
..snip...

Erm, at its simplest:

Inside IR35 and own Ltd Company, you pay PAYE and NICs on 95% of your gross.

Inside IR35 and using an Umbrella, you pay PAYE and NICs on 100% of your gross.

QED...

This is all explained in great detail in SJD's sticky thread. Other than the deletion of the MSC, all that thread still stands. Nobody's forcing anyone to do anything, but the simple fact is that the most tax efficient solution is to use your own company.

[DaveB]

17.5inch biceps. Come ahead

Bingo Wings

[lambrini_socialist]

seriously though, i had a similar ethical view on being inside IR35, until i had a look at the actual numbers involved, then i found it was surprisingly easy to completely change my viewpoint on a heartfelt and fundamental level. no tulip.

[blacjac]

I have a spare room in my house. Now I *could* rent that out. But I choose not to. In purely financial terms, that looks foolish, I'm losing a substantial amount of income. But not everything in life is about finance. Maximising income is not my primary goal in life. If at some point I really need the money, I have the option of renting it out.

It's the same thing for me with the brolly.
Hope that explains my position a bit better.

That is an interesting point and I do see where you are coming from, however the two things (letting a room / running a Ltd) are not really comparable.


What are the dangers of running a Ltd?
A bit of extra work, some hassle, some stress

What are the dangers of letting a room?
Inviting some wierdo in your house who holds you prisoner and buggers you nightly.
Oh hang on, that's a bit like a HMRC investigation isn't it..........