Originally posted by psychocandy
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Previously on "Switching between outside and inside IR35 - tips?"
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Originally posted by eek View Post
That only works if the agency is happy to use the umbrella the accountant is connected to / uses - many agencies won't because they only trust some umbrellas.
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Originally posted by psychocandy View PostI had this years ago. You don't want to be paying £100 or whatever a month to keep the ltd going when you're with umbrella. I was there almost 5 years so it made sense to shut it down.
Saying that, I see a lot of accountants now do an add-on umbrella package. Just in the process of signing up with one thats £115+VAT, plus £20+VAT a month for the umbrella add-on.
Pretty good since this total comes out of the ltd bottom line so you're saving on tax. (Deregister from flat rate - might as well - and claim the vat back)
When I was just umbrella, if I remember correctly, it was £25 a week per payslip anyway (and that came out of personal total), so this is pretty good.
£135 a month via ltd, or £108 (£25 x 52 / 12) via umbrella only. Seems ok to me giving me flexibility if any outside gigs come along.....
Works out cheaper if you consider the CT saving too.....
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I had this years ago. You don't want to be paying £100 or whatever a month to keep the ltd going when you're with umbrella. I was there almost 5 years so it made sense to shut it down.
Saying that, I see a lot of accountants now do an add-on umbrella package. Just in the process of signing up with one thats £115+VAT, plus £20+VAT a month for the umbrella add-on.
Pretty good since this total comes out of the ltd bottom line so you're saving on tax. (Deregister from flat rate - might as well - and claim the vat back)
When I was just umbrella, if I remember correctly, it was £25 a week per payslip anyway (and that came out of personal total), so this is pretty good.
£135 a month via ltd, or £108 (£25 x 52 / 12) via umbrella only. Seems ok to me giving me flexibility if any outside gigs come along.....
Works out cheaper if you consider the CT saving too.....
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Originally posted by ForBajor View Post
Thanks - do you mean this umbrella company? https://clarityumbrella.co.uk/contra...ay-calculator/
Margin they take is identical to Giant.
Thanks for the link to the spreadsheet - who compiled this, and are Clarity on there? Presumably if the public facing accounts can't be reconciled, that's a bit sketchy - assuming that's what the data is based on.
Thanks for the tips on how to use the money - I really must move out of living with family post-divorce so my first thought is plough everything into saving for a house and get that big life change done ASAP, get back on the ladder after losing quite a lot.
Also have asked the agent for others on the PSL.
The smaller umbrellas can't perform the tricks the bigger ones do as they use 3rd party systems to run their payroll, Giant / Parasol / Brookson use in house systems which is why they have been targeted by hackers.
Clarity / Lucy is 100% honest - as I'm sat staring at her accounts at the moment (Clarity is the core dataset I'm testing something on)..Last edited by eek; 27 January 2022, 18:37.
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Originally posted by eek View PostYou may wish to ask the agency why they prefer Giant because I would be avoiding them - Offpayroll discovered that their payslips don't add up which implies they are skimming something on top from a lot of contractors Umbrella PSL Comparison [PUBLIC] - Google Sheets
Ask them which other umbrella firms are on the PSL and we can advice - our recommendation will always be Clarity as she visits the forum and is 100% honest.
Finally when it comes to in and outside IR35 projects, use outside work to provide dividends to live on and use the inside work to top up your pension - otherwise you are sending 40-50% of what you earn to the tax man compared to 27% if you use dividends.
Margin they take is identical to Giant.
Thanks for the link to the spreadsheet - who compiled this, and are Clarity on there? Presumably if the public facing accounts can't be reconciled, that's a bit sketchy - assuming that's what the data is based on.
Thanks for the tips on how to use the money - I really must move out of living with family post-divorce so my first thought is plough everything into saving for a house and get that big life change done ASAP, get back on the ladder after losing quite a lot.
Also have asked the agent for others on the PSL.Last edited by ForBajor; 27 January 2022, 18:19.
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You may wish to ask the agency why they prefer Giant because I would be avoiding them - Offpayroll discovered that their payslips don't add up which implies they are skimming something on top from a lot of contractors Umbrella PSL Comparison [PUBLIC] - Google Sheets
Ask them which other umbrella firms are on the PSL and we can advice - our recommendation will always be Clarity as she visits the forum and is 100% honest.
Finally when it comes to in and outside IR35 projects, use outside work to provide dividends to live on and use the inside work to top up your pension - otherwise you are sending 40-50% of what you earn to the tax man compared to 27% if you use dividends.Last edited by eek; 27 January 2022, 17:38.
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1) ask your accountant what needs to be done to reduce their fees. We can’t help. Dormancy is likely not needed, but they will tell you.
2) Read the umbrella company sub-forum as all the answers you could possibly want, and some you might not, are all in there.
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Switching between outside and inside IR35 - tips?
Hello
My current outside IR35 contract is ending soon and I've just got an offer for an inside IR35 contract which according to the generic contractor salary calculator means a quite nice pay increase: from 400d outside to 700d inside. My preference is outside IR35 but this is a good client and role, so good CV building material.
My current thinking is I need to
1. Put my Ltd Co in dormant state during the inside IR35 contracting period so I can reduce accounting fees, although
2. Go through a brolly, with the agent citing Giant as their preference: https://info.giantgroup.com/juilkjhfredcbnyuhf
As this would be my first inside IR35 contract, I want to keep things simple but sensible. Giant offer umbrella and PAYE options - not entirely sure which one I'd need. My financial needs in the short term are towards saving for a house ASAP.
Cheers
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