Reply to: Parasol Payslip question

[basshead]

Indeed you have

How did you get the overpayment back? Is it a significant difference?

It was automatically done by the parasol payroll (I think... was 3 yrs ago now.. ) and yes the difference in take home was significant.

[biton]

Told ya :P

Was same for me when I worked through Parasol. First month paid extra tax, once P45 was received they changed it and I got the overpayment back.

Indeed you have

How did you get the overpayment back? Is it a significant difference?

[basshead]

Ok, I just found out that I was on emergency tax code

Any thoughts?

Told ya :P

Was same for me when I worked through Parasol. First month paid extra tax, once P45 was received they changed it and I got the overpayment back.

[Ardesco]

Yes, that seems to be the majority's opinion here. As a newbie in this contracting world, I don't trust myself enough to dispute this advice.

But it sure is annoying to see half your salary taken away by the evil tax-man.

It always has been, you just never noticed it before

HTH

[biton]

Forget about the LTD Co option.

Not to mention if your contract is caught by IR35 it won't make a blind bit of difference anyway.

Yes, that seems to be the majority's opinion here. As a newbie in this contracting world, I don't trust myself enough to dispute this advice.

But it sure is annoying to see half your salary taken away by the evil tax-man.

[SallyAnne]

[QUOTE=biton]

Is it worth it for 4 months?

No, definately not mate.

You can get investigated for up to 6 years for one thing, so do you really want to spend the next 6 years looking over your shouldner for the tax man just off 6 months work?

Plus, there are costs involved in closing your business down and stuff - just stick with Parasol for this contract. If you then decide you want to contract further, set up your own limited.

[Money Money Money]

That was short and clear Any specific reason?

Any thoughts?

**** IT! TAKE YOUR PAY GROSS, PAY NO TAX! BEST POSSIBLE RETURN MATE!

[Ardesco]

I want none of the dirty work.

Forget about the LTD Co option.

Not to mention if your contract is caught by IR35 it won't make a blind bit of difference anyway.

[LisaContractorUmbrella]

That was short and clear Any specific reason?

Ok, I just found out that I was on emergency tax code with Parasol. My real tax code should be 522L (as was with my previous permie job).

How different will it be (net pay wise, of course) switching the tax code?
I'd be happy with 60% take home as I have no real desire to plunge into the LTD hole for only 4 months. Any thoughts?

An emergency tax code just means that your tax free allowance is not cummulative. A change to 522L will not make a real difference unless you have not worked each week in this current financial year i.e. from 6th April 2007. Your tax code will be changed when Parasol receive your P45 from your previous employment

HTH

[ZARDOZ]

Any thoughts?

FFS springs to mind!

[biton]

No.

That was short and clear Any specific reason?

Ok, I just found out that I was on emergency tax code with Parasol. My real tax code should be 522L (as was with my previous permie job).

How different will it be (net pay wise, of course) switching the tax code?
I'd be happy with 60% take home as I have no real desire to plunge into the LTD hole for only 4 months. Any thoughts?

[biton]

[QUOTE=LisaContractorUmbrella]

must forget the lovely IR35 if your contract is caught by this then you will be no better off than going through an umbrella co. Think you need to do a bit more investigation before jumping. Parasol have a lot of expenses that you can claim which help reduce the amount of tax you pay.

Just to clarify - It is not your umbrella company that has expenses that you can claim - they will just process expenses for you that you have legitimately incurred and that you can prove with receipts.

I can't claim any expenses as I live 10 minutes walk from the site.

Ok, decision time. My agency allows me to switch to Ltd only in a month. Which means I'll have 4 months of working through my limited company if I wish to. My plan is to let SJD take care of all of the setting up and housekeeping. I want none of the dirty work. Is it worth it for 4 months?

[LisaContractorUmbrella]

[QUOTE=Cooperinliverp00l]must forget the lovely IR35 if your contract is caught by this then you will be no better off than going through an umbrella co. Think you need to do a bit more investigation before jumping. Parasol have a lot of expenses that you can claim which help reduce the amount of tax you pay.

Just to clarify - It is not your umbrella company that has expenses that you can claim - they will just process expenses for you that you have legitimately incurred and that you can prove with receipts.

[Cooperinliverp00l]

Well, 50% tax is way too steep for my taste.

According to the guide I read, all I need to do is fill some timesheets and make my accountant aware of any communication with the HMRC.

I'm not trying to break the law, just to take advantage of the holes in it as most contractors do (if we're really being honest here).

must forget the lovely IR35 if your contract is caught by this then you will be no better off than going through an umbrella co. Think you need to do a bit more investigation before jumping. Parasol have a lot of expenses that you can claim which help reduce the amount of tax you pay.

I was with Parasol and paid weekly. On the weeks where there was no expenses to take into account i was taking home 55% of sales. the next payment after submitting expenses (approx £1500 a month) i was taking home 85% of sales. I think i worked it out that spread over the month i was taking home 68% of sales.

For 6 months i would go with this as there is less start up and close down hassle going through ltd co. and as said on here there is a lot more involved with ltd co than just running your money through it.

[biton]

No, but if the taxman comes a-visiting, best dream up a better reason !

Well, 50% tax is way too steep for my taste.

According to the guide I read, all I need to do is fill some timesheets and make my accountant aware of any communication with the HMRC.

I'm not trying to break the law, just to take advantage of the holes in it as most contractors do (if we're really being honest here).