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Invoicing Agency POST Inside IR35 via Limited Company

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    #31
    Originally posted by teapot418 View Post
    ContractorUmbrella is recommended round these parts. I don't have first hand experience, but Lucy, their MD posts here, so worth giving them a call.
    Thanks, just filled in the "request a callback"

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      #32
      Originally posted by ntdmr View Post
      Thanks!
      I am starting to think umbrella is the way to go with this going forward! Hopefully can find the cheapest one I can?
      Correct. Pre-April, VAT would earn you £13 a day on a £500 rate, after April it's £1 a day. That's purely at its basic, without factoring it into the overall structure of your company's financial accounts.
      The greatest trick the devil ever pulled was convincing the world that he didn't exist

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        #33
        Originally posted by ntdmr View Post
        Thanks!
        I am starting to think umbrella is the way to go with this going forward! Hopefully can find the cheapest one I can?
        Don't do that. Find the best one. 'Cheap ones' or ones offering 80%+ retention are potentially costing contractors their houses at the moment.

        I'd also recommend ContractorUmbrella but I'd be picking up the phone. Demand to speak to Lucy and tell them Teapot418 sent you
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #34
          Originally posted by ntdmr View Post
          I use the flat rate VAT scheme. I like that extra 3.5% that comes back to me.
          I am trying to maximize my take home pay inside IR35.
          Well good news - it's basically gone from April as the rate for virtually all contractors goes up to 16.5%
          "You’re just a bad memory who doesn’t know when to go away" JR

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            #35
            Originally posted by SueEllen View Post
            Well good news - it's basically gone from April as the rate for virtually all contractors goes up to 16.5%
            Proper Ray of sunshine you ain't ya lol.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

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              #36
              Lucy has already sent me an email and will have a chat with her tomorrow.

              Not interested in any of the 80% umbrellas - I spoke to one who explained how it worked with loans and indemnities and decided to stay well clear! Sounded like Jimmy Carr's accountant!

              Thank you all for your help!

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                #37
                Originally posted by ntdmr View Post
                Lucy has already sent me an email and will have a chat with her tomorrow.

                Not interested in any of the 80% umbrellas - I spoke to one who explained how it worked with loans and indemnities and decided to stay well clear! Sounded like Jimmy Carr's accountant!

                Thank you all for your help!
                Very wise..
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #38
                  Off-Payroll – The Nitty, Gritty - Contractor Weekly

                  Useful article with examples.

                  Comment


                    #39
                    Originally posted by ntdmr View Post
                    Apologies if this has been asked before, I tried to search but didn't find anything.

                    My current contract within the public sector runs out at the end of March, although I have had an offer to renew on a higher rate to offset the change (if my calculations are correct!).

                    My agent has told me if I want to continue through my Limited Company I need to invoice them my day rate minus 13.8% and 0.5%.
                    e.g £500 - 14.3% = £437.45.

                    Is this correct way? I am confused about the £8112 EmployERs NIC allowance? When is this taken into account? Or will this come back automatically via a HMRC rebate? Obviously I don't want to over pay my EmployERs NIC!

                    Finally charging VAT.
                    I believe I can continue to carry on charging VAT which will be on my full day rate (e.g. £500)? How would I pay myself the 3.5% (20%-16.5%). Does this have to go through my own companies PAYE?

                    Thanks
                    Do the deemed payment calculation and add on top of normal amount

                    Comment


                      #40
                      It is looking more and more likely I am going to go down the umbrella route for ease of use, and had a chat with Lucy, but in the meantime, this was the latest I got when I questioned the "reduced rate"

                      My current rate is £425 per day.
                      "Effective from 1st April 2017, you will need to invoice us at the new daily rate of £375.38 per professional day + VAT as we are not legally permitted to deduct Employers NI from you therefore the rate reduction is in effect to account for this cost that we have to pay to HMRC. We will then take the gross of the invoice excluding VAT and calculate and deduct the relevant income tax and employees NICs. You will receive both a remittance for gross and a payslip showing the net + VAT from ourselves."

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