Umbrella v PAYE

[smileyface]

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

[Old Greg]

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

No.

[northernladuk]

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

Yes

[Old Greg]

Yes

What about radiator bleeding allowances?

[northernladuk]

What about radiator bleeding allowances?

But the increase costs of gladiator training writes that off.

[Old Greg]

But the increase costs of gladiator training writes that off.

Not for registered chutney spoon recycling technicians.

[northernladuk]

Not for registered chutney spoon recycling technicians.

Dammit. I hate it when you're always right.

[Mordac]

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

Not if the contract gross rate is higher than the employees gross equivalent salary (and if it isn't you should consider a career change).

[Whorty]

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

Maybe.