using an umbrella post April 20

[rootsnall]

Can somebody please point me to where it says you can use an umbrella post April 20 if your employment status determination says you are an 'employee'. From what I can gather if the end client says you are caught then they have to deduct tax and NI so why would you use an umbrella ? Do the large organisations that are saying no more Ltds intend running an employment status determination that says you are NOT an employee and then forcing you to use an umbrella to receive your gross payment? Sorry, probably me being thick, I have looked at a lot of posts and done a lot of googling.

[cojak]

Can somebody please point me to where it says you can use an umbrella post April 20 if your employment status determination says you are an 'employee'. From what I can gather if the end client says you are caught then they have to deduct tax and NI so why would you use an umbrella ? Do the large organisations that are saying no more Ltds intend running an employment status determination that says you are NOT an employee and then forcing you to use an umbrella to receive your gross payment? Sorry, probably me being thick, I have looked at a lot of posts and done a lot of googling.

Because the agent will shove a PSL under your nose and say "Here you are - pick one of these five/six etc"

[rootsnall]

Because the agent will shove a PSL under your nose and say "Here you are - pick one of these five/six etc"

But am I correct that to do that they would first have to say you are NOT an employee via an employment status determination ? Do they know that HMRC will be happy with that ? They are collecting all their NI so I don't see why they wouldn't be. I can see many end clients being wary of this route, they may as well just pay you via PAYE from their own payroll.

The use of an umbrella with salary sacrifice is a lot better option than being treated as a PAYE employee for many of us. I can't see end clients wanting to get involved with salary sacrifice.

[KinooOrKinog]

Can somebody please point me to where it says you can use an umbrella post April 20 if your employment status determination says you are an 'employee'. From what I can gather if the end client says you are caught then they have to deduct tax and NI so why would you use an umbrella ? Do the large organisations that are saying no more Ltds intend running an employment status determination that says you are NOT an employee and then forcing you to use an umbrella to receive your gross payment? Sorry, probably me being thick, I have looked at a lot of posts and done a lot of googling.

If they say you are inside then the fee payer deducts the tax/NI & pays the net to you the individual. If they say you are outside then they pay the gross to your ltd & your ltd pays your salary/div. If they say they aren't engaging ltd's then IR35 doesn't apply & they don't need to make a determination so you either go on their payroll or through an umbrella.

[rootsnall]

If they say they aren't engaging ltd's then IR35 doesn't apply & they don't need to make a determination so you either go on their payroll or through an umbrella.

Aha ! That was what I was after. Is this explained anywhere in some HMRC guidance or similar ?

( this would be an ideal way for a client I have worked for previously to take me on post April, so if I can point them in the right direction …. )

[cojak]

This is all we have atm. April 2020 changes to off-payroll working for clients - GOV.UK

It doesn't go into policy determination - clients bypass it when they say that they simply will not use PSCs going forward.

[rootsnall]

This is all we have atm. April 2020 changes to off-payroll working for clients - GOV.UK

It doesn't go into policy determination - clients bypass it when they say that they simply will not use PSCs going forward.

Thanks. I'll attempt to digest, I'm glad I've not found that one in my previous googling