Reply to: Feel like agency is tricking me..........not a good start to IR35....

[cojak]

And I am going to lock it again.

@OP - you have enough information to be able to make your own decision on this.

Or speak to 3 umbrella companies and ask them for their best quote.

This topic is closed.

[ITPRO2]

I guess that is why this poster is on £140 a day lol....

Why choose to get personal on this? See here:

http://forums.contractoruk.com/busin...al-forums.html

[Wanderer]

You will be eligible for almost no expenses - lunch is not an option

Why do you say that?

[psychocandy]

£140 a day.... Hmmm.

[mudskipper]

Mosaslop.
You claim to be an accountant (or at least part qualified!) according to the post Cojak locked.

I think that's a little harsh

Sorry NLUK - comment retracted.

[dmini]

Mosaslop.
You claim to be an accountant (or at least part qualified!) according to the post Cojak locked.
Then for goodness sakes start looking at the different figures - and understanding them. They are not that difficult - they are just numbers and percentages.
On that rate, for a 6 month contract there is not real gain in going limited - you are far better off being umbrella
If they are paying you £X per day under umbrella you will HAVE to pay employers NIC.
You will be eligible for almost no expenses - lunch is not an option despite what parasol will tell you, and mileage is only an option if you run a second contract through the umbrella - so £97 of expenses a week is not going to happen. That is how / why the figures are fudged.
Now please just go to ContractorUmbrella who will keep you on the straight and narrow and not let you claim anything silly (which a number of other umbrellas will) and are really good and helpful.
Then please, before you continue - go and read all the stuff here - then go to SJD, then go to ContractorUmbrellas site and read all the free stuff there as well. Oh and on PCG and the stuff at the top here and on the stickys. When you have understood it come back - you will be a lot more knowledgeable - everything you need is there. We know - because many of us learnt most of it off these places.
If you need some basic contractor accounting lessons I am sure I can provide them - PM me and I will tell you my charges!

[Sausage Surprise]

Agreed. If I was the OP I'd talk to Lisa about going Umbrella. Running a Ltd is a lot of hassle for £140 a day. Infact at that rate I'd prefer umbrella and less hassle.

As it's your first contract and you seem to be floundering, I totally agree with the above.

[jamesbrown]

Because they fudge the numbers to make it look like you will somehow have a better take home pay from this umbrella company compared to others. The fact is that if you use a PAYE umbrella and pay the correct amount of tax then your take home pay will be exactly the same regardless of which umbrella company you use.


Try this calculator

Yup. Any fudging of the numbers, run a mile because, umbrella fees aside (which shouldn't cause much variation and should be identified upfront), they're all playing by the same rules w/r to employer and employee taxes and expenses.

[Wanderer]

now........why is that absolutely miles better than what these calculators are saying?

Because they fudge the numbers to make it look like you will somehow have a better take home pay from this umbrella company compared to others. The fact is that if you use a PAYE umbrella and pay the correct amount of tax then your take home pay will be exactly the same regardless of which umbrella company you use.


Try this calculator

[mudskipper]

Right - and this is the result i've had using other calculators, but it makes zero sense.
I've made a query with a few umbrella companies, and this is what parasol gave me:



now........why is that absolutely miles better than what these calculators are saying?

The calculator is based on 44 weeks per year. If you take Parasol's weekly figure and multiply by 44, the figures are much closer. Each calculator will assume different expenses etc.

[northernladuk]

Right - and this is the result i've had using other calculators, but it makes zero sense.
I've made a query with a few umbrella companies, and this is what parasol gave me:



now........why is that absolutely miles better than what these calculators are saying?

Could be out of date with tax levels, badly written, don't take other factors in the umbrellas do and so on. They are only a guide at the best of times and as you have found out are no replacement for speaking to the professionals...

[mosaslop]

Here you go - this compares £140 per day outside and inside

Right - and this is the result i've had using other calculators, but it makes zero sense.
I've made a query with a few umbrella companies, and this is what parasol gave me:



now........why is that absolutely miles better than what these calculators are saying?

[northernladuk]

I think that's a little harsh - OP has been dropped in the deep end.

I meant because the OP is ready to sling it without reading their own post properly and had it served back to them on a plate....

Touchy aint we?

[mudskipper]

Here you go - this compares £140 per day outside and inside

[mudskipper]

I guess that is why this poster is on £140 a day lol....

I think that's a little harsh - OP has been dropped in the deep end.

The point that OP has missed is that, as a contractor, he has to pay both Employer and Employee NIs, so he will be worse off than if on the same 'perm' salary - even before you take into account no holiday pay / sick pay / employer pension contributions / other permie benefits.

If he believes he's outside IR35 (which doesn't sound probable) he can reduce the NI aspect by taking his money as a combination of salary and dividends.

If he's inside IR35, then unless he particularly wants to run his own company, he'll probably be as well going brolly (other umbrellas are also available )

However, it sounds like he has already incorporated. Not sure what the costs are for winding up a company he's never used?