Umbrella v PAYE

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Whorty replied

12 January 2019, 11:11
Originally posted by smileyface View Post

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

Maybe.
Leave a comment:
Mordac replied

12 January 2019, 10:54
Originally posted by smileyface View Post

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

Not if the contract gross rate is higher than the employees gross equivalent salary (and if it isn't you should consider a career change).
Leave a comment:
northernladuk replied

11 January 2019, 23:05
Originally posted by Old Greg View Post

Not for registered chutney spoon recycling technicians.

Dammit. I hate it when you're always right.
Leave a comment:
Old Greg replied

11 January 2019, 23:00
Originally posted by northernladuk View Post

But the increase costs of gladiator training writes that off.

Not for registered chutney spoon recycling technicians.
Leave a comment:
northernladuk replied

11 January 2019, 22:36
Originally posted by Old Greg View Post

What about radiator bleeding allowances?

But the increase costs of gladiator training writes that off.
Leave a comment:
Old Greg replied

11 January 2019, 22:36
Originally posted by northernladuk View Post

Yes

What about radiator bleeding allowances?
Leave a comment:
northernladuk replied

11 January 2019, 22:32
Originally posted by smileyface View Post

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

Yes
Leave a comment:
Old Greg replied

11 January 2019, 21:34
Originally posted by smileyface View Post

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

No.
Leave a comment:
smileyface started a topic Umbrella v PAYE

11 January 2019, 21:28
Umbrella v PAYE

My understanding is a PAYE employee has all taxes deducted before receiving their pay.

The same is true for a contractor using an umbrella company.

However, using an umbrella company incurs a fee.

So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?
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