anyone used BBufallo before?

[ASB]

Oh right, that's good news. I'm more concerned about getting 'screwed' for tax evasions than on my home takings. At least you get some control over your takings by shopping around.

Thanks again malvolio. Will check out those guides you suggested.

Munky,

A word of caution. Whilst the umbrellas paying you PAYE will eradicate IR35 issues (because IR35 can only apply if you have payments not subject to PAYE) this will releive of the worry in that area.

But, where you might need to worry is expenses. I would hesistate to say umbrellas lie to you, but they are often a bit economical with the truth.

If you claim expenses based on the umbrellas dispensation you are opening yourself up to potential problems. Do not claim expenses you have not made.

The conversation seems to go like this:-

Q: Can I claim subsistance.
A: Of course we have a dispensation for "x".

All this means is they do not need to see the claim if it is less than x. It does not mean you can claim x regardless.

Some umbrellas, apparently, will effectively force you to claim the dispensation amount. If your chosen one does this I personally would be inclined to unchoose it.

However it you are desparate to use the services of one that behave in this way you can ensure you do not foul things up by ensuring you correctly declare the payments on your tax return and only cross claim the actual expenses incurred (obviously this will lead to a tax bill on the difference since you have received it gross).

Oh and go ltd. It's no more hassle and cheaper if you are outside IR35.

[munky]

An umbrella company, if it operates legitimately will automatically be 'IR35 compliant' as they pay through PAYE. Before you sign up with anyone you should ensure that is the way that they pay - as long as you have done that you really do not need to concern yourself with IR35 until you are ready to open your own limited company

Oh right, that's good news. I'm more concerned about getting 'screwed' for tax evasions than on my home takings. At least you get some control over your takings by shopping around.

Thanks again malvolio. Will check out those guides you suggested.

[LisaContractorUmbrella]

The reason I want to get the contract checked is: I read that if an umrella is not IR35 compliant then you could be classed as being self employed as supposed to being an employee which could potentially make you liable for tax evasion. Though I could be wrong.

An umbrella company, if it operates legitimately will automatically be 'IR35 compliant' as they pay through PAYE. Before you sign up with anyone you should ensure that is the way that they pay - as long as you have done that you really do not need to concern yourself with IR35 until you are ready to open your own limited company

[malvolio]

Yes, you could.

IR35 is a person tax, nothing to do with the umbrella. Have you read the guides yet? If not, do that next before asking any more ill-informed questions. If you have, you'd better do it again.
These are absolute basics you're asking about. We (or at least I) only have a limited supply of patience...

[munky]

The reason I want to get the contract checked is: I read that if an umrella is not IR35 compliant then you could be classed as being self employed as supposed to being an employee which could potentially make you liable for tax evasion. Though I could be wrong.

[LisaContractorUmbrella]

Hi Munky

As Malvolio says - if you are going to be using an umbrella company your IR35 status becomes irrelevent. IR35 purely determines the way that you receive payment - if you are outside IR35 and you have your own limited company you can draw dividends from that company. If your contract is inside IR35 the only way you can be paid is through PAYE (Pay As You Earn). All umbrella companies will pay you via PAYE and that is why you need not concern yourself with IR35 if you use one

HTH

[malvolio]

Accountants cost less than umbrellas (even if you don't accept the arguemnt that a good accountant will save you money).

CAB won't have the faintest idea about the complexities of IR35. Dont ask HMRC either.

If you go umbrella, you don't care about IR35, you're an employee paying full PAYE and NICs.

Start with the honest ones - Parasol, PCG QU - then the ones recommended above so you have a point of comparison. There are more than a few cowboys out there. Ignore any discussion on expense policy (seriously - you'll only get confused and misled).

You're also a contractor. Nothing is for free.

I think you have a bit of learning to do - read the guides yet?

[Orangutan]

1st point, how much research have you done on accountancy fees ?
A good accountant is effectively free as they will save you money (either up front or in penalties)

2nd point, have you had a look around this site, or done a search, there are a number of references to IR35 contract checking
Also consider looking at and joining the PCG.

3rd point, don't waste your time going to Citizens Advice, bless them, the time it will take and the standard of response you will get will probably not be worth the effort. Learn for yourself, ask informed questions and consider paying someone to review the contract for you.

and before you ask, have a search on this site for the agency you are using for other peoples experiences.

I don't mean to sound arsy(?), but approach this as professionally as you would your day-to-day work.

note: I am aware that the above is probably a "do as I say not as I do" thing.

[munky]

Thanks for all the advice guys!

I can't afford accountant rates at this time so going to give an umbrella a go. I'm thinking I'm going to ring a few this afternoon to see who gets me the best deal and later take the contract to the citizens advice to make sure its IR35 compliant.

Anyone know anywhere else I might be able to get the contract validated for little or no cost?

[Cooperinliverp00l]

Hi i have just finished leaving Parasol IT (umbrella company) and would highly recommend them. everthing is done on line submitting your expenses, timesheets e.t.c. I think they are £25 pw which then gets off set against your tax anyway. It works out cheaper if your monthly pay which is about £60 month.

I left to start up my ltd company (at last i hear some of you say) company can be set up within a day for you to start trading with it. You would then have to get the ball rolling with accountant, bank account (before you can get paid) and any insurance policy you require. Except for VAT number i had everything in place within 2 weeks of setting up company.

if you get a good accountant they will talk you through everything you need to know and how to record daily transactions of money.

Hope this helps

[Rialto99]

I'm a newb to IT contracting and have been advised by my agency to use an umbrella company so pls don't flame me

I'm a bit reluctant after reading the following article which claims that many umbrella comapnies will screw you over: link. But then everyone seems to have their own twist on this so not sure. Thought I'd check with you guys first.

The best I've found up to now going by online estimats is BBuffallow. They claim to pay me out £496 a week salary (minus £25pw admin charge - £13 after tax relief) compared with £429 at Nasa consulting (minus £10 a week admin charge) which was the company passed on to me by the agency. Obviously these differ alot so I'm a bit disollusioned with it all.

Ps anyone know of any comprehensive sources on how to set up and manage a ltd company? is it really that easy and how long would it take to have it set up and approx costs?

chars!

Garry

I've been doing 'a bit of research' on Umbrellas this week although I can only comment on those based in Bristol and ContractorUmbrella (don't know where they are located).

I work in a fairly large team at LTSB of which we have probably 16 freelancers including myself.

2 contractors use Nasa Consulting (www.nasaconsulting.com) - as above. Simple low cost umbrella, not sure whether they are accountants or Umbrella company specialists. Worth a punt (£22 Per Week)

3 contractors use Redego (www.redego.co.uk) - pretty much the same as Nasa although a better customer service apparently. Also worth a punt. (£18 Per Week)

5 contractors use ContractorUmbrella (www.contractorumbrella.com) - similar type of service (to be honest I think it must be the same) as other 2. I think they're bigger than most so may be more of a safer option? (19.95 Per Week). Ask Lisa any questions you have here but can't see why they're not worth a punt!

1 contractor uses TreasureGuard (www.treasureguard.com) - couldn't get much info from their website about the Umbrella service but my colleague said they're a 6.5 / 10 for customer service. (£22.95 Per Week). Why not?

All the other contractors in my team so i'm told use their own Ltd Comp.

Hope this helps

Cheers
R

[ASB]

And you might like to review the stickys about dispensations etcs.

[malvolio]

Sigh...

Since you're too lazy to search for yourself (not a good sign for a contractor career...) there's a first timer guide on this site, the definitive one is at www.pcg.org.uk and SJD accountancy have got a fairly comprehensive one as well. Go read all three.

Never heard of your two choices of umbrella, so nuff said?

[munky]

I'm a newb to IT contracting and have been advised by my agency to use an umbrella company so pls don't flame me

I'm a bit reluctant after reading the following article which claims that many umbrella comapnies will screw you over: link. But then everyone seems to have their own twist on this so not sure. Thought I'd check with you guys first.

The best I've found up to now going by online estimats is BBuffallow. They claim to pay me out £496 a week salary (minus £25pw admin charge - £13 after tax relief) compared with £429 at Nasa consulting (minus £10 a week admin charge) which was the company passed on to me by the agency. Obviously these differ alot so I'm a bit disollusioned with it all.

Ps anyone know of any comprehensive sources on how to set up and manage a ltd company? is it really that easy and how long would it take to have it set up and approx costs?

chars!

Garry