Ltd company or Umbrella for inside-IR35 contract ?

[Numbermill]

^^^ This any role I have been offered in public sector the agency has only offered Umbrella or PAYE Ltd is out the window

We're trying to change this but many agencies are under little commercial pressure to push back against the "blanket bans" their clients have put in place. Placements are still being filled. Contractors are still going to work. If the rate goes up, the charge has also gone up so no financial hit to them.

Updated NHS guidelines means the Trusts "should" start individually assessing Ltd Company contractors and a few recruiters have suggested that where the NHS goes, other Public Sector Bodies will follow.

Depending on who you're working with, it could be worth requesting an IR35 assessment and seeing if you can get signed off for Gross payments. We've had a bit of success, but that's cos we love a scrap

Rob@Numbermill

[psychocandy]

I'm in the same position. Used ltd for years and current gig is inside IR35 public sector.

Signed up with umbrella so its easy enough and you get paid directly. Accountants have been good enough to charge 1/2 fees while Im doing this.
One problem I found is pension. Umbrella are obliged to provide a pension but will only do minimum (1%). I was hoping to chuck a bundle into a pension - might as well. Only thing the offer is AVC but this sort of defeats the object a bit.

Agency will consider PAYE but only via another company (paystream) and cost is same as an umbrella. If I did this money would get decucted then go into ltd who could then pay me directly. Trouble is accountant would want full fees then (despite not doing payroll) so it would cost a few quid more (not much - £10 a week or so).

To be honest, Im currently looking into it or at least trying to find an umbrella that allows more of a pension contribution and/or childcare vouchers.

[lucyclarityumbrella]

I have a Ltd but for my next contract I'll be using ContractorUmbrella, which has a very good rep on here. Intend taking advantage of the pension contribution side of things to make the pain of being inside IR35 a bit less taxing.

Thanks Hobosapien The pension is one of the only decent tax savings nowadays, and our group pension scheme has no exit fees, so if you have an existing pension you can benefit from the salary sacrifice through ourselves and then look to transfer it after. HTH