Paystream vs Parasol - please help!

[lucyclarityumbrella]

I hope you're doing quarterly performance reviews with your staff and have personal development plans in place for every single one of them

Of course

[Paralytic]

Not technically true, if they are complying with employment law there are a fair few things they should do.

I hope you're doing quarterly performance reviews with your staff and have personal development plans in place for every single one of them

[lucyclarityumbrella]

Although on paper, these companies say they are your employer, to all intents and purposes, they are not. You never see or hear from them unless you are submitting a timesheet.

Not technically true, if they are complying with employment law there are a fair few things they should do.

[eek]

And you aren't telling us anything we've not been saying for the past 5 years.

[pacontracting]

Although on paper, these companies say they are your employer, to all intents and purposes, they are not. You never see or hear from them unless you are submitting a timesheet. They will try to upsell you on their tax return service or remind you every now and again, that as your employer, blah blah but you are just a source on income to them.

Most umbrellas charge a similar flat fee, but the tax you pay is eye watering.

From the rate you agree with your agent, after the umbrella's fee (about £100 / month), the umbrella will deduct about 15% employers tax (NI, AP levy). Yea, I know, they shouldn't; the agency should provide you with the 'employee' rate, but they don't.

Next, they'll deduct employee NI and income tax, and fudge some holiday pay deductions in there. As a welcome gift, you'll likely get a silly K tax code, assuming you to earning six figure salary. You'll enjoy getting on the phone to deal with this as the umbrella doesn't deal with HMRC and the umbrella won't change the code unless instructed to be HMRC - that's your first payslip decimated.

You'll notice that on your payslip, your salary will be the minimum wage. Yep - welcome to the 'minimum wage' club. Your 'commission' will be your pay.

So finally, once your tax code is sorted, if you plan for getting about 55% of the amount the umbrella invoices the agency for, that's about right. Welcome to PAYE contracting.

[lucyclarityumbrella]

Paystream seems to pay more/take less than Parasol, but obviously this calculator estimate may not be 100% accurate.

Request written quotes so you can see why there is a difference, at the end of the day the take should be pretty much the same with any umbrella give or take a few pounds.

[northernladuk]

You also need to understand why you are being asked this. If you are moving from outside to inside then you have been inside all along and could be on the hook for retrospective action for paying the wrong tax.

Plenty information in the IR35 reforms section.

[northernladuk]

Ring them and find out. While you are I the phone ask them for an expect figure.

Plenty of guides to umbrellas. Take a look at the guides to the right.

If you want information in each company use the Google method to find threads where these have been discussed.
In google type...
Paystream site:contractoruk.com/forums

[Danimillie]

Hi! I’ve been told that I need to move from limited company to either Parasol or Paystream umbrella companies due to IR35. Ive been online and on the estimate take home calculators, Paystream seems to pay more/take less than Parasol, but obviously this calculator estimate may not be 100% accurate. Please could you advise how much the fees are for both as I can’t find the information anywhere online! And the pros/cons to either of them if you have used them? (I’m new to umbrella companies and have no clue). Thanks!