PAYE v Umbrella
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    Default PAYE v Umbrella

    Okay I have been offered a short 3 month contract in the NHS which may fill a gap, my choices offered are ( rounded up )
    PAYE 16 via agency, or umbrella 19 ph

    Having researched the umbrella route it's right on the cusp of being unviable with the extras payable (employers nat ins, apprentice levi, + umbrella fees. Etc.

    Comments anybody ?

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    Contractor Among Contractors

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    For the sake of 3 an hour, I'd go PAYE. Your rate would have to be significantly more via Umbrella to make it worthwhile.
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    Quote Originally Posted by ladymuck View Post
    For the sake of 3 an hour, I'd go PAYE. Your rate would have to be significantly more via Umbrella to make it worthwhile.
    +1

    You're going to lose most of that 3 in employers NI anyway, so go PAYE. You'd get a lot more protection from being PAYE too.
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    Quote Originally Posted by ladymuck View Post
    For the sake of 3 an hour, I'd go PAYE. Your rate would have to be significantly more via Umbrella to make it worthwhile.
    That's what I have been thinking, it's to close to call, and having spoken to a couple of Umbrellas this afternoon they sort of avoid the question, they of course (as you would expect ) push the umbrella side but this is a relatively low paid contract for a short period of time.

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    The additional deductions for umbrella, based on the rate you mention for a 37.5 hour week would be 2.56 per hour!

    At CU we don't skirt around things and always happy to answer honestly
    Just watching what I say

    We now offer Ltd too, so if you need a company that you can switch between Ltd & Umbrella, just shout!

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    Quote Originally Posted by lucycontractorumbrella View Post
    At CU we don't skirt around things and always happy to answer honestly
    You would say that though

    (It's like deja vu all over again)
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    Quote Originally Posted by TheFaQQer View Post
    (It's like deja vu all over again)
    Just watching what I say

    We now offer Ltd too, so if you need a company that you can switch between Ltd & Umbrella, just shout!

    Connect with me on LinkedIn

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    Updating my own thread, ended up I went PAYE, as advised the difference in rate was just not worth the expense of the umbrella, sign of the times unfortunately 20 yrs a contractor and ended up on PAYE still it's only for Two months Two weeks according to my contract 😄. Contracting is being killed by government legislation and the loss of travel and subsistance, and IR35. I have already been asked if I'm prepared to use my own car to commute to another site 51 miles away ! Answer NO ! I'll use the Pool car or not be going at all thanks ! The days of milking the contractor have gone it works both ways !

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    Quote Originally Posted by Yonmons View Post
    Okay I have been offered a short 3 month contract in the NHS which may fill a gap, my choices offered are ( rounded up )
    PAYE 16 via agency, or umbrella 19 ph

    Having researched the umbrella route it's right on the cusp of being unviable with the extras payable (employers nat ins, apprentice levi, + umbrella fees. Etc.

    Comments anybody ?
    Hi

    Have just run the numbers for you as a comparison based on standard tax code and 37.5 hrs per week.

    19/hr through umbrella Net Pay = 491.61

    16/hr through Agency PAYE Net Pay= 471.07

    Hope this helps.

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    Quote Originally Posted by Yonmons View Post
    I have already been asked if I'm prepared to use my own car to commute to another site 51 miles away !
    Sure, 45p a mile after deducting usual commute right...

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