Opt in/out... sorry to mention this again

Thanks

Thanks guys.

Widget you are absolutely correct, I should do my own research (and will ASAP) but I've just got back from sabbattical and have had this position come up and I need to make a V. swift decision.

Tim - not a first timer but found my previous Ltd company cumbersome and find the ease of use of an umbrella over a minor piece of lost revenue acceptable.

If what you say is correct, and having read most of both of yours previous posts I have no reason to doubt you - this is kind of what I was looking for.

Many thanks again.

As you are considering using an umbrella I would guess that you are a first-timer (without a Ltd).

So the question is irrelevent as, in this circumstance, it is impossible for you to opt-out. The opt-out must be signed by you (as the employee) AND by someone (as the representative of "the work seeker who is incorporated"- your Ltd) BEFORE the employee is introduced to the client. This someone will probably also be you, but it could also be a co-director. But, "the work seeker who is incorporated" does not yet exist so you (or anybody else) cannot sign on their behalf.

The agency can pretend to himself that you can opt-out but if you should ever have the need to show that your opt-out is void there should be little difficulty in doing so.

tim

1. Do your own research. We might lie to you (hint look at the DTI web site).

2. Sack the agent, they are lying to you. You could report them to the DTI.

The "only" reason opting in/out could affect your tax and NI would be if it were a major pointer to IR35 status. It isn't so it can't.

Your agent is obviously worried so use this to negotiate a cast iron outside IR35 contract. Make sure it is signed and accepted by you, the agent and the client.
If they wont negotiate then stay opted in. You also want to check terms and conditions of that contract (as you would with any contract) to determine your IR35 status and therefore rate.

Hi, can anyone very briefly advise how opting in/out affects tax/ni etc as agency have suggested this to be the case...

Also, "1st Option" as an umbrella company. Any info or experiences..

Many thanks in advance,


Steve