Ir35 take home 85% under umbrella.

[Moumunne]

Can someone explain, why is it that you can take home 85% contracted by umbrella under ir35 ?

Outside ir35 working for your own LTD you used to pay 22% after expenses. So it doesn't make sense. At the end seems like you are actually paying less in taxes.

[BrilloPad]

Which umbrella is this? Does it assume the hourly rate is mimimum wage?

You should be very wary.

http://forums.contractoruk.com/hmrc-...following.html

[northernladuk]

You can't. Run away. Plenty of threads on it on here and a whole section dedicated to those caught up in it.

[Moumunne]

I don't know. I have couple of Colleagues, Locum doctors getting payed through umbrella. They are taking home exactly 85%. They couldn't explain except it was mention something about an annuity fund.

[northernladuk]

Tell them to come on here and read the thread linked and then HMRC investigation part of these forums.

[SueEllen]

I don't know. I have couple of Colleagues, Locum doctors getting payed through umbrella. They are taking home exactly 85%. They couldn't explain except it was mention something about an annuity fund.

First have a look at this forum - linky. Make sure you read a few threads.

Then ask the "umbrella" how do the "umbrella" give you 85% take home?

If they cannot give a simple explanation that you can understand then they are talking about tax evasion not avoidance.

BTW we could help you more if you named the umbrella.

[Moumunne]

I will ask the name of the umbrella.

Thank you for all your answers.

[SeanT]

If it sounds too good to be true...

[eek]

If it sounds too good to be true it is.

Scam umbrellas pray on people’s lack of understanding and greed. The end result will be a very large bill from Hmrc and given the current methods being used permanent damage or your pension.

Apart from that my current viewpoint is that it’s now greed winning rather than fear (as was the case in the very early days of ir35) so it’s self inflicted no sympathy.

[BrilloPad]

I don't know. I have couple of Colleagues, Locum doctors getting payed through umbrella. They are taking home exactly 85%. They couldn't explain except it was mention something about an annuity fund.

If they are doctors they need to be struck off. Are they really that stupid?