Public Sector and Umbrella

[misterpingu]

Nothing has changed on the ir35 front, an umbrella user pays full PAYE so is not subject to ir35.

Thanks- yep totally get that. What worries me is some lunacy or any change upstream in the chain.

[lucyclarityumbrella]

Honestly. You really should have a better grasp of the mechanism you use to get paid and what's happening around you rather than having to ask on a public for every two months.

Now, now... having spoken with so many people in the industry, both contractors and agencies, you would not believe the different opinions that are being given! It is worrying how often people misinterpret what is being said!

[lucyclarityumbrella]

Hello Lucy- just checking you think this is still the case. A lot of info has come out since this reply!

No the same still stands, this part of the Intermediaries Legislation is not applicable to umbrella's. As the majority have said, you are paid via PAYE, so in essence, HMRC are getting the taxes they want with no worries

[Barrygbr]

I think in your case nothing changes.

Except that for your next contract you may find that your pay rate has been capped. For me this means a drop in the hourly rate of about £6ph (37.5 x 6 = £225 p/w or to put it another way £11,700 per annum - B'tards!!!)