£750 a day inside

[WTFH]

And what happens if ...

Yes, there's lots of "what happens if", we can't play out every single scenario, which is why any contractor who has been doing it for a while will advise you to have a good archest built up.

Going to be a load of hassle sorting your tax out surely?

That's why contractors pay to have an accountant.

Read a few horror stories of umbrella company screw ups

There's a lot of horror stories about contractor screw ups.
Most of the horror stories about umbrellas are because people have gone for unregistered umbrellas, or ones that operate schemes.


Contracting over the last decade has become more and more difficult and it's not going to get any easier over the next 4+ years unless something major changes in HMGov & HMRC.

[tsmith]

I think checking with your accountant is important. Would there be any issue in making Pension contributions (from retained funds in PSC) if you're an employee (either standard PAYE or Umbrella) at the time? Can you make those payments even if you're not actively working via the PSC? I guess you could argue you are actively out looking for business.

And what happens if you go back to PSC limited after a few months. Going to be a load of hassle sorting your tax out surely? Read a few horror stories of umbrella company screw ups

Its already a ballache of multiple months on bench between roles - staring at jobserve everyday

Now Im gonna have tax nightmares on top.

Contracting just isnt worth the hassle. Back to perm it is

[Paralytic]

You can choose to leave funds in your LtdCo and/or use them the fund your pension - check with your accountant the best way forward. If there's any business activity (such as pension contribs) then I don't think you can make it dormant.

I think checking with your accountant is important. Would there be any issue in making Pension contributions (from retained funds in PSC) if you're an employee (either standard PAYE or Umbrella) at the time? Can you make those payments even if you're not actively working via the PSC? I guess you could argue you are actively out looking for business.

[ladymuck]

The double posting gremlin is back!

You could get an income tax refund but you'll never get a NI refund.

You can choose to leave funds in your LtdCo and/or use them the fund your pension - check with your accountant the best way forward. If there's any business activity (such as pension contribs) then I don't think you can make it dormant.

[tsmith]

Remember no expense deductions, if you're doing a like for like comparison.

What happens if you only work 6 months a year through umbrella? Can you claim tax back? Recruiter told me Im having to pay myself employers national insurance through this umbrella setup so is that going to reduce tax reclaimable by 12.5%?

750 a day for 6 months = £99,000 gross

Through umbrella Contractor Take Home Pay & Expenses Calculator | Parasol thats

£7900 net per month x 6 = £47,400 net

According to this The Salary Calculator - Take-Home tax calculator

Usual PAYE perm job with salary of £99,000 for the year - would be take home of £66,000

If I cant reclaim that tax back with umbrella contract Im £20,000 worse off than being perm.

And what happens to my limited company? Stop taking monthly salary and leave it dormant for the foreseeable future?

[vwdan]

Remember no expense deductions, if you're doing a like for like comparison.

[Wobblyheed]

Was offered a Public Sector role in Newcastle for £450 inside - I worked on the project last year for £400 outside. I declined the offer.

[malvolio]

Forgive me if this is a stupid question. That £350 goes straight in the pocket doesn't it? I guess you could put some aside for the bench, and sickness and pension, but no corporate tax or VAT?

Well yes, it is a stupid question, you're supposed to know these kinds of basics

Anyway, it is net pay to you personally. Which means any pension funding is coming out of your taxed income, as are any travel and subsistence expenses. And you can only reclaim the tax on your pension contributions via self assessment.

CT and VAT would not be your concern. You are, when all is said and done, an employee with no employment rights. That is the real crime here.

[PCTNN]

Just had a potential role presented to me- not at interview stage yet but been informed...

Rate is £750 inside IR35 through an Umbrella - would give a net day rate after NIC and PAYE contributions of circa £350

This is a worst case figure and likely higher once tax codes and allowances are factored in – probably closer to £390-400

---

Anyone on a similar rate now and willing to share their net per day please?

Contractor Take Home Pay & Expenses Calculator | Parasol

[GhostofTarbera]

Forgive me if this is a stupid question. That £350 goes straight in the pocket doesn't it? I guess you could put some aside for the bench, and sickness and pension, but no corporate tax or VAT?

Yes


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