Umbrella Rate vs Deemed Ltd rate

[eek]

Yes - don't because you lose the ability to throw large sums into your pension before National Insurance is deducted.

Pick an umbrella that does salary sacrifice pension and use that.

i should also add that that 11.5% deduction makes zero sense at all.

[glw]

I've accepted my first 'inside IR35' assignment to start in the new year.
I am keen to continue operating my limited company, as I have an investment property that is owned through it, so I still have the responsibility of submitting EOY accounts to HMRC. With that in mind, I see little point in opting for an umbrella company to operate my payroll.

The role that I have accepted has 2 advertised rates. The umbrella rate and a deemed ltd rate. The deemed ltd rate is approx 11.5% less than the umbrella rate, which would imply I guess that Employers NI contributions have already been deducted.

My accountant does not have anyone on their books that operate as deemed ltd, they're all presumably umbrella. They have told me there's no problem operating the 'Deemed Employment Payment scheme' for my limited company, however it appears that Employers NI contributions have to be deducted as part of this process. I've tried questioning why the rate is 11.5% lower, but getting any meaningful information relating to this from either of the 2 agents that sit above my ltd co and beneath the client is proving difficult.

Does anyone have any experience of operating through the Deemed ltd scheme? I've seen other roles advertised with the same 11.5% discrepancy between the umbrella and Deemed ltd rate, so there seems to be consistency but I don't understand the process.

Would appreciate any help.

Thanks in advance.