Reply to: PS IR35 - Paystream and still use ltd instead of umbrella - VAT?

[psychocandy]

No names mentioned - but we have had an exception to the rule with said agency for one of our contractors, who said they would walk unless he could work with us - just saying

Ha ha - personally I think it should be illegal for agencies to refuse who they work with like this....

[lucyclarityumbrella]

I know a very poor agency who continually mention Paystream whereby they force contractors to use Paystream claiming that Paystream is the only 'regulated umbrella' out there and that in the event of taxes not being correctly paid the agency may face lawsuits if its contractors use a different umbrella. Essentially the agency is referring contractors to Paystream, one can only guess what reward is in it for the agency!

Hmmmm if the agency can prove they have done proper due diligence then there should be no issues in terms of liabilities

[lucyclarityumbrella]

One decent umbrella seems to be the nice lady who posts on here but my agency wont deal with them.

No names mentioned - but we have had an exception to the rule with said agency for one of our contractors, who said they would walk unless he could work with us - just saying

[SteelyDan]

I know a very poor agency who continually mention Paystream whereby they force contractors to use Paystream claiming that Paystream is the only 'regulated umbrella' out there and that in the event of taxes not being correctly paid the agency may face lawsuits if its contractors use a different umbrella. Essentially the agency is referring contractors to Paystream, one can only guess what reward is in it for the agency!

I'm sure there's an agency [can't remember name] who are subtly linked in a business sense with Paystream...

[MrMarkyMark]

NLUK - when you wake up sweating in the middle of the night and log on to CUK I'll be here!!!!

You were still here when you were a Job Club regular.

So, I guess, that's kind of guaranteed.

You are a bit of a bed wetter though

[nosolog]

You sure about going with Paystream? There seems to be a couple of posts pop up that aren't that complimentary about them. Hate for you to be pissed of with them and have to moan to us constantly about it.

I know a very poor agency who continually mention Paystream whereby they force contractors to use Paystream claiming that Paystream is the only 'regulated umbrella' out there and that in the event of taxes not being correctly paid the agency may face lawsuits if its contractors use a different umbrella. Essentially the agency is referring contractors to Paystream, one can only guess what reward is in it for the agency!

[psychocandy]

Oh crap

NLUK - when you wake up sweating in the middle of the night and log on to CUK I'll be here!!!!

[northernladuk]

6 month extension starting soon! BOOOOOOMMMMMM

Oh crap

[psychocandy]

This gig is gonna be over by the time you get this sorted.

6 month extension starting soon! BOOOOOOMMMMMM

[northernladuk]

This gig is gonna be over by the time you get this sorted.

[psychocandy]

PayStream is voted Contractor UK’s umbrella provider of the year - Contractor Weekly

2013 but feck me...... The rest must have been bad.

Saying that my recent experience of umbrellas has not been good. They all seem to employ staff on minimum wage who have little idea what they're doing. Its money for nothing for them.

One decent umbrella seems to be the nice lady who posts on here but my agency wont deal with them.

[psychocandy]

Paystream to be fair are totally crap. Completely clueless. Depends which person you speak to you get a different answer.

I thought it was all sorted at £5 per invoice but now apparently its 0.75% - bit of a difference!

To be honest, I'd can them but I'm keen to get away from umbrella and back using ltd. And these are the only ones agency will allow.

[psychocandy]

That sounds sensible.

Would you rather have a tax bill via self assessment at the end of the year and pay that, or overpay tax now and then have to claim that back? I'd sooner have the money in my bank and know I get the figure right, compared with someone else guessing it based on a singular point in time assumption about the work that I'll do in a year and then have to make sure it's correct in the future.

Yep fair enough. I just wasn't sure whether legally you were allowed to do it this way.

Otherwise, in perm employer could do the same. Tax you on basic rate allow you to stick the rest in bank account for few months which would be nice. Surely not allowed?

[TheFaQQer]

Things not so sure about:-
1. Paystream will only deduct PAYE as per basic rate taxpayer. Not sure if you'd have to then account for the rest monthly via ltd or just at end of year tax return?

That sounds sensible.

Would you rather have a tax bill via self assessment at the end of the year and pay that, or overpay tax now and then have to claim that back? I'd sooner have the money in my bank and know I get the figure right, compared with someone else guessing it based on a singular point in time assumption about the work that I'll do in a year and then have to make sure it's correct in the future.

[psychocandy]

Bit dubious of using paystream but this is the only way to go ltd via the agency in question.
Waiting to speak to them today but basically, the way it works is:-

1. Submit invoice plus vat in the normal way.
2. Agency pass to paystream who deduct paye and ni.
3. They pay this PLUS the vat to limited.
4. You pay yourself.

Good points about this:-
1. Paystream will pay whatever you want from the money they recieve into a pension fund of your choice (my main reason for moving away from umbrella - not many are interested in doing anything other than the minimum).
2. It costs just £5 per invoice. (Previously, I was paying £24 a week, PLUS half fees to accountant to keep ltd going - Now its full accountancy fees plus £5 per week)

Things not so sure about:-
1. Paystream will only deduct PAYE as per basic rate taxpayer. Not sure if you'd have to then account for the rest monthly via ltd or just at end of year tax return? NI is a flat rate dependent on income that week isnt it so that should be ok I guess?

2. Obviously, still need to pay accountants fees etc. Ltd has zero income now effectively. Accountant mentioned being able to claim these costs back as expenses so saving on the tax but you wouldnt save NI (because paystream paid this out already)? Confused here.

So anyone else done similar?