Reply to: Umbrella Companies

[maxima]

Yeah sorry to draw you into this useless conversation.. it just lack of experience of mine....

perhaps there are a lot of different situations out there....

[Back In Business]

may be this is my shallow experience. i hadnt had a contract inside IR35. i surely will refuse such a contract. i think it is more effective to wait for another contract than do anything inside IR35.... just cant envisage what could make me take such a contract..

I agree - but at the moment there is a lot of work around and many of us can afford to be picky about the work we take on. It hasn't always been like this (2001-2003 for example) and then you just have to take whatever you can get.

[maxima]

If you run your own limited and are inside IR35

may be this is my shallow experience. i hadnt had a contract inside IR35. i surely will refuse such a contract. i think it is more effective to wait for another contract than do anything inside IR35.... just cant envisage what could make me take such a contract..

[pisces]

Except to keep more of your money, even inside.

[Back In Business]

certainly I saw that article.. But it still gives me no clue why someone is willing to pay twice more tax?

is it purely because they are afraid [subjective] of 'legal stuff' what involves your own ltd?

or (that was my question) are there some specific activities (different than IT contracting/consulting) which makes PAYE solution truly [objective] attractive?

thank you

If you run your own limited and are inside IR35 you will still make more than a) using a brolly b) being a permie. The level paperwork/legal stuff should be irrelevant.

PS. If that response missed the point, it's probably because I don't understand your question. My apologies in advance.

[tim123]

can someone please explain what is the point of contracting under IR35?

An hourly rate of twice what I would get as a perm.

tim

[maxima]

certainly I saw that article.. But it still gives me no clue why someone is willing to pay twice more tax?

is it purely because they are afraid [subjective] of 'legal stuff' what involves your own ltd?

or (that was my question) are there some specific activities (different than IT contracting/consulting) which makes PAYE solution truly [objective] attractive?

thank you

[Back In Business]

Oh very dear. You don't even have to search for this one it's a sticky: http://forums.contractoruk.com/thread7487.html

[maxima]

some people are INSIDE IR35 so don't need to go Ltd.

can someone please explain what is the point of contracting under IR35?

[maxima]

Don't use giant they are a bunch of cowboys!

what did they do to u ? sexually abused? poor boy...

[Anonimouse]

yeah PAYE is considerably lower per hour so not worth it. still looking for a decent brolly, is nobody prepared to recommend?

also I thought you couldn't be limited if under IR35 :dizzy:

[John Galt]

I still use a brolly because I am inside IR35 and I can't be bothered with paperwork - would never go PAYE with agencies because the rate is never lower by just the employer's NI - in my experience agencies don't want the responsibility of having 'employee's' and either refuse to put you through PAYE or really hammer you on the rate

[gingerjedi]

some people are INSIDE IR35 so don't need to go Ltd.

Then any good agency should be able to pay PAYE direct, the rate will go down to reflect employers NIC but thats it.

[Bluebird]

some people are INSIDE IR35 so don't need to go Ltd.

[gingerjedi]

Why are you looking for umbrellas when everyone is leaving like rats deserting a ship? I would be seriously worried about trusting money to one now as they will be hard pressed to make ends meet come April as their client base will be seriously diminished, I am planning on leaving mine on 30/03/07 and start using my ltd on 2/04/07 and my brolly has no idea, I'm sure my situation is not unique.