Umbrella confusion!!!!!!!

[jamesbrown]

251 for a day's work. 65 pound paid by the umbrella, whistles off to the accountant....

Is the industry regulated? Apart from other members of the industry.

There's really no difference between legitimate umbrella companies, other than their margin (and, obviously, their customer service), because the legislation is fixed. Hence "All Umbrella Companies Are Equal (AUCAE)". So when you see substantial differences between companies, you know that one or more are trying to rip you off, introduce dodgy assumptions, or knowingly lead you down a path that will end in your bending over to HMRC, or perhaps all three.

This really isn't rocket science. It's incredibly simple. If you're working through a legitimate umbrella company, it's PAYE or nothing. That means full employer's and employee's National Insurance contributions too. You should expect to retain something like ~55-65% of your income, depending on your earnings.

If you can't understand this (quickly), you're probably not a legitimate poster.

[Milkyway]

in April 2017 almost all contractors will probably have to be inside IR35 and pay PAYE

What is that all about?? HAVE to be?? Seriously??
Govt. linky please!

[northernladuk]

What is that all about?? HAVE to be?? Seriously??
Govt. linky please!

She ia talking about Public Sector. Plenty of links on here and google if you have a look.

[eek]

What is that all about?? HAVE to be?? Seriously??
Govt. linky please!

https://www.gov.uk/government/consul...es-legislation

For consultation read done deal with the slight possibility of very minor changes.

It will impact all work in the public sector. Example 3 shows how it would impact consultancies - which some hoped would provide a get out clause

[cojak]

...and how long before you think it's going to apply to the private sector as well?

[Milkyway]

...and how long before you think it's going to apply to the private sector as well?

Oh OK. You were talking about all in public sector! Understood.

That said, as you say, if this will also soon apply to private sector, that is a worry then!
I will certainly have to think about slowly stopping my consulting/contracting work ,and increase my dependency on my software product development / sales business as my mainstream income flow (from current 65/35 => to almost 100% from product development and 0 from consultancy/contracting).

Scary days indeed for contracting.
I wonder what QDOS et al. will do then. Probably that explains why they are moving into accounting, etc. business model? (so they can slowly phase out the IR35 related business from their portfolio).

[LondonManc]

...and how long before you think it's going to apply to the private sector as well?

Quite a while. They'll look at it, but banks and other big players will push back.

Either that or it will all be undone within six months.

[cojak]

Quite a while. They'll look at it, but banks and other big players will push back.

Either that or it will all be undone within six months.

Let's hope so.

[LondonManc]

Let's hope so.

Ideally it'll all go tits up on the public sector side next summer and will never get near the private sector. If it does reach private sector, I may well end up going back to perm and get the training, paid sick, holiday pay, etc.

[northernladuk]

Scary days indeed for contracting.
I wonder what QDOS et al. will do then. Probably that explains why they are moving into accounting, etc. business model? (so they can slowly phase out the IR35 related business from their portfolio).

I don't think the PS consultation is the reason QDOS went it to accounting. Something more along the lines of the number of contractors that cross their threshold every day so makes sense to create a spin off service.