Originally posted by timittim
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Everything you ever wanted to know about umbrella companies but were afraid to ask...
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Originally posted by DonkeyRhubarb View PostWould I be right in thinking that there isn't much difference in take home between Umbrella and Ltd inside IR35?
The benefit of Ltd when IR35 caught is you still get a 5% allowance that doesn't have to be taken as salary and can benefit from the flat rate VAT scheme (turnover dependent), plus you don't have another link in the chain controlling your money.
On the flip side, there are benefits of using an Umbrella (a good one) as it reduces the perceived 'hassle' of running a Ltd when the difference in take home pay isn't too difference.Comment
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Originally posted by EBTContractor View PostWhat is a typical return for Umbrealla vs Ltd?
Outside ir35 about 75%. If married and agressive a bit more.
All depends on your individual position and rate.Comment
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Originally posted by LisaContractorUmbrella View PostNot a lot at all
the 5% is largely irrelevant. It is subject to ct. If you are a higher rate taxpayer and dont draw it then you save a bit. If you do draw it then then tax is paid making it broadly the same. There is overall a modest ni saving which would amount to about 0.5%.
If flat rate vate this adds about 2.5%.
If rate below about 250 vat threshold and in ir35 then brolly seems the pragmatic choice unless mitigating through large employer pension contributions which some brollys cannot cope with.Comment
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Originally posted by ASB View PostLow rate and infrequent work you could be worse off. Brolly charges could be lower than ltd overheads.
the 5% is largely irrelevant. It is subject to ct. If you are a higher rate taxpayer and dont draw it then you save a bit. If you do draw it then then tax is paid making it broadly the same. There is overall a modest ni saving which would amount to about 0.5%.
If flat rate vate this adds about 2.5%.
If rate below about 250 vat threshold and in ir35 then brolly seems the pragmatic choice unless mitigating through large employer pension contributions which some brollys cannot cope with.Comment
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Umbrella company
I started doing a few days a week through an agency, they advised me to set up a Limited company.... biggest mistake of my life, time consuming and costly. I know it was due to my errors but I received large fines for stuff I didn’t know about. I should have done my research really but my consultant said Its good to have a Ltd company.. Maybe for some.
After looking though the net for an alternative pay solution and I came across Umbrella companies... not sure why my consultant mentioned this before would have saved me a few quid in fines. I spoke to my consultant and he referred me to a few ones he knows of but as I know consultants work on a referral basis I took it on my own head to search the Net for a good umbrella company. After a few days of calling and calculations I came across a company called Paraffin Umbrella. In my opinion these guys stood out to me, extremely helpful and by far the cheapest company I had came across just £13.00 a week providing I actually work, how I could refuse, they even sorted out all my previous bother with my Ltd company.
I have been dealing with Paraffin for over 8 Months now and I can honestly say that the service has been A star****
Payslips and money is there every week on time. Sometimes I need paying early and they do it no questions asked, great company. For any one contracting and thinking about going Umbrella call these guys there great.
w ww.paraffingroup.co.ukComment
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Originally posted by Martin Bugler View PostI started doing a few days a week through an agency, they advised me to set up a Limited company.... biggest mistake of my life, time consuming and costly. I know it was due to my errors but I received large fines for stuff I didn’t know about. I should have done my research really but my consultant said Its good to have a Ltd company.. Maybe for some.
After looking though the net for an alternative pay solution and I came across Umbrella companies... not sure why my consultant mentioned this before would have saved me a few quid in fines. I spoke to my consultant and he referred me to a few ones he knows of but as I know consultants work on a referral basis I took it on my own head to search the Net for a good umbrella company. After a few days of calling and calculations I came across a company called Paraffin Umbrella. In my opinion these guys stood out to me, extremely helpful and by far the cheapest company I had came across just £13.00 a week providing I actually work, how I could refuse, they even sorted out all my previous bother with my Ltd company.
I have been dealing with Paraffin for over 8 Months now and I can honestly say that the service has been A star****
Payslips and money is there every week on time. Sometimes I need paying early and they do it no questions asked, great company. For any one contracting and thinking about going Umbrella call these guys there great.
w ww.paraffingroup.co.uk
(Umbrella) Companies: check them out BEFORE they go wrong!
Google registered office site: paraffingroup.co.uk
Or maybe
VAT site: paraffingroup.co.uk
Then decide rather than just take the word of a 1 post punter..."I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...Comment
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Originally posted by Martin Bugler View PostI started doing a few days a week through an agency
Originally posted by Martin Bugler View PostI have been dealing with Paraffin for over 8 Months now and I can honestly say that the service has been A star****
Paraffin was set up last year and has one current director, who is the grand old age of 24. If I was ever going to go umbrella, I'd be wanting a more experienced management team to be looking after my money.Comment
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Originally posted by cojak View Post
https://maps.google.com/maps?q=48+Be...bp=12,315,,0,0Comment
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