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Yes Umbrella

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    Yes Umbrella

    I wonder if anyone can help - have read the forums, and tried a few searches but nothing.

    Im about to start my first inside IR35 contract after contracting for a while outside scope and need an umbrella company.

    Looking at google, these guys came up and they are promising:

    You will become an employee of our preferred Umbrella Company. As an employee, IR35 just isn't applicable so this is something you needn't worry about.

    They will pay you a salary and pay all Tax and NIC's due on your behalf.

    As a member of the Consultancy Network you will also be eligible to receive Profit Share.

    There are a number of ways to receive the Profit Share, the most tax efficient of which is via a Capital Payment, which is fully disclosed to HMRC and is taxable.


    Has anyone here used them - and is using them a bad idea?

    #2
    Originally posted by Ursicles View Post
    Has anyone here used them - and is using them a bad idea?
    No and a very big yes. There is nothing on their website except smoke and mirrors. Compare their website with a reputable company like Contractor Umbrella. Look at all the resources available on there including a transparent calculator to gice a guide of what you will earn. Yes have hidden their illustration away. Why on earth would they do that if it was all legit.

    Run a mile.

    While you are looking at Contractor Umbrella you might want to think about using them

    Www.contractorumbrella.com
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Pretty much my thoughts - the promise of 70%+ return sounded a bit too good to be true.

      Everyone wants to make more £, but not if HMRC going to send me a huge bill down the line.

      Comment


        #4
        A fully compliant PAYE based umbrella will return you around low 60% of invoiced hours in terms of value.

        Anything more is tax avoidance territory.
        Best Forum Adviser & Forum Personality of the Year 2018.

        (No, me neither).

        Comment


          #5
          Originally posted by webberg View Post
          A fully compliant PAYE based umbrella will return you around low 60% of invoiced hours in terms of value.

          Anything more is tax avoidance territory.
          Unless you are a 20% tax payer - in which case you may bag nearer to 70% so dependent on earnings

          Comment


            #6
            Originally posted by midlandlass View Post
            Unless you are a 20% tax payer - in which case you may bag nearer to 70% so dependent on earnings
            A 12 month contract that pays say £42,000 a year gross attracts (in 19/20)

            Tax £5,900
            Em'ee NIC £4,004
            Em,er NIC £4,604.

            If the employee can command the above rate AFTER employer NIC (I.e. suffers just tax and em'ee NIC) and BEFORE umbrella fees, the deduction is £9,904 or 23.6% of the gross.

            If the employee has to meet em'er NIC from the gross rate, the deduction (BEFORE umbrella fees) is £14,508 or 34.5% of gross.
            Best Forum Adviser & Forum Personality of the Year 2018.

            (No, me neither).

            Comment

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