Inside IR35 - umbrella or PAYE?

[cat89]

thank you everyone. I've got another question about another company that I think is offering something different, but I'll start another thread

[BABABlackSheep]

If inside IR35 the only sane option is an umbrella and putting as much as possible into your pension scheme - look for an umbrella that can do this as a lot really can't.

This. Go to a brollie company like PayStream | Contractor Accountants: Limited & Umbrella services..

Speak to them and ask for a Example calculation Based on your rate. Then ask them how much your take home differs if you salary sacrifice into your SIPP x amount.

Brollie and Salary Sacrifice in Pension is actually a decent tax efficient option.

[Ricky@IntouchAccounting]

That assumes it's worth doing so and that outside IR35 contracts will exist after April (while true in some markets I suspect it won't be in a lot of others).

Given that this is his first contract my advice to the OP would be to not worry about setting up and using a limited company (you don't need it at the moment and it's just extra admin for potentially zero benefit but extra cost) and just find an umbrella company you can trust.

It all depends on the overall fee, as you might find that you can pay the same, if not more to some umbrella companies in deductions than you would for use of a fixed fee that covers the best of both worlds. But it all depends on the umbrella and the bigger picture but if they will both end up running concurrently it will save costs overall.

[eek]

Some accountants, offer both umbrella and limited company services as part of their normal service. So you can switch between limited and umbrella seamlessly or even concurrently. So this is something to look out for.

That assumes it's worth doing so and that outside IR35 contracts will exist after April (while true in some markets I suspect it won't be in a lot of others).

Given that this is his first contract my advice to the OP would be to not worry about setting up and using a limited company (you don't need it at the moment and it's just extra admin for potentially zero benefit but extra cost) and just find an umbrella company you can trust.

[Ricky@IntouchAccounting]

Some accountants, offer both umbrella and limited company services as part of their normal service. So you can switch between limited and umbrella seamlessly or even concurrently. So this is something to look out for.

[eek]

Hi,

I am looking at getting my first contact in the public sector which is inside IR35, and I am a newbie to contracting .

I am currently also looking at getting an accountant to register a company for some other work I am hoping to do later in the year or early next year.

Should I asked to be paid for this inside IR35 contract now via umbrella or via PAYE (and do I need a company to do it via PAYE?). The contract is 3-6 months and pay is £550 p/day.

Thanks!

If inside IR35 the only sane option is an umbrella and putting as much as possible into your pension scheme - look for an umbrella that can do this as a lot really can't.

[cat89]

Hi,

I am looking at getting my first contact in the public sector which is inside IR35, and I am a newbie to contracting .

I am currently also looking at getting an accountant to register a company for some other work I am hoping to do later in the year or early next year.

Should I asked to be paid for this inside IR35 contract now via umbrella or via PAYE (and do I need a company to do it via PAYE?). The contract is 3-6 months and pay is £550 p/day.

Thanks!