IR35 Confusion - how do I compare? - Contractor UK Bulletin Board

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JessMatt replied

12 March 2020, 09:51
Originally posted by ComplianceLady View Post

I wrote something on this with a visual explainer IR35: Engagement types

Thanks that is really handy!

I’m thinking that for simplicity then an umbrella company may be the way to go.
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ComplianceLady replied

12 March 2020, 09:07
I wrote something on this with a visual explainer IR35: Engagement types
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JessMatt replied

12 March 2020, 07:30
Originally posted by GhostofTarbera View Post

WhAts your current rate ?

Sent from my iPhone using Contractor UK Forum

Current rate is £350 per day outside IR35
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GhostofTarbera replied

12 March 2020, 07:12
Originally posted by JessMatt View Post

Thanks for the reply!

So, am I right in thinking that if the agency is looking after the employer contributions, my day rate would be £306 and I would operate and pay corporation tax etc as I do already but just with that lower day rate? (But without an expense allowance too)?

WhAts your current rate ?

Sent from my iPhone using Contractor UK Forum
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JessMatt replied

12 March 2020, 03:30
Originally posted by northernladuk View Post

The contract rate agreed with the umbrella company will be higher than the rate offered to you if you engage directly with they agency as they will be taking on employer responsibilities rather than the umbrella company.

Quite a few threads asking the same thing here.

different rate paye umbrella site:contractoruk.com/forums - Google Search

Thanks for the reply!

So, am I right in thinking that if the agency is looking after the employer contributions, my day rate would be £306 and I would operate and pay corporation tax etc as I do already but just with that lower day rate? (But without an expense allowance too)?
Leave a comment:
northernladuk replied

12 March 2020, 01:04
The contract rate agreed with the umbrella company will be higher than the rate offered to you if you engage directly with they agency as they will be taking on employer responsibilities rather than the umbrella company.

Quite a few threads asking the same thing here.

different rate paye umbrella site:contractoruk.com/forums - Google Search

Last edited by northernladuk; 12 March 2020, 01:07.
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JessMatt started a topic IR35 Confusion - how do I compare?

12 March 2020, 00:59
IR35 Confusion - how do I compare?

Hi all,

Firstly apologies if this is something that is covered but I’ve searched and searched and I’m just getting more confused. I’ve only been contracting for a few months and while now being caught in IR35 isn’t unexpected, I’m confused about the new rates I’ve been quoted by my agency and I can’t find anywhere to help compare them.

Can anyone advise what they think is the best choice? Are they about the same? Even if you could share a calculator to help compare that would be great...

My agency has said that I can work with an umbrella, they can work with me as a deemed contractor and do my NI and tax at source for no extra cost or I can do PAYE (and get holiday). The quoted day rates are:

Umbrella contractor: £350
Deemed ltd: £306
PAYE: £260

I’m not precious about keeping an Ltd company as I will be having a baby in August so won’t be working most of the year (and am then undecided about whether to continue contracting). Also my expenses aren’t huge - maybe £2k a year - not sure if that makes a difference.

Ultimately I just want to make sure I’m not getting ripped off and if it’s not really much difference then for the sake of simplicity I’ll go with the least paperwork.

Thanks in advance!
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