Umbrella questions about SDC expenses, pensions and Scottish tax bands

[eek]

Valid until April 6th 2020, then they are going to have to change that page.

Not sure, it's probably still valid for a very limited scenario - where you are deemed outside but use an umbrella as you hate paperwork (or are bankrupt and can't run a limited company).

[ladymuck]

Not sure, it's probably still valid for a very limited scenario - where you are deemed outside but use an umbrella as you hate paperwork (or are bankrupt and can't run a limited company).

The page will still need changing. It will just contain content for more than one scenario.

[GhostofTarbera]

Valid until April 6th 2020, then they are going to have to change that page.

God someone will be looking for there 5% next


Sent from my iPhone using Contractor UK Forum

[GhostofTarbera]

Thanks for the replies everyone

Firstly:


So this is the key point. The client didn't deem me inside - CEST was no result, so they've gone the cautious route. As far as I'm aware, there's never been anything to stop an outside IR35 role being worked through an umbrella?
If I got a company to do a manual determination and it showed the role as outside, would that be enough for outside SDC too? Or are the rules different for IR35 and SDC determinations.

In terms of the take-home percentage, I really need a calculator or formula.
Firstly tax rates in Scotland are very different to the rest of the UK, so take-home pay can differ by thousands.
But also, I want to put as much as possible into my pension through salary sacrifice, but obviously need to leave enough to pay the bills.
I need some way to calculate these figures

Forgot about jocko tax rates

Gross multiplied by 0.6 will be near enough

You will get big differences from quotes from umbrella as they try to win your business

But when you get your 1st payslip using correct tax code it’s 0.6 of gross


Sent from my iPhone using Contractor UK Forum

[gaz777]

The client HAS to make a decision one way or the other if they want you to do work for them from April 6 onwards.

That's an interesting point. So you're saying that if CEST returns no result, they're required to do a manual determination instead?
That's not happening (at least properly) in this case. I suspect most other companies with no result roles won't be doing full manual determinations either. Does that mean they're breaking the rules?

[GhostofTarbera]

That's an interesting point. So you're saying that if CEST returns no result, they're required to do a manual determination instead?
That's not happening (at least properly) in this case. I suspect most other companies with no result roles won't be doing full manual determinations either. Does that mean they're breaking the rules?

Hence why so many company’s are just saying no limited company contractors and not making a IR35 decision


Sent from my iPhone using Contractor UK Forum

[Amanensia]

As far as I'm aware, there's never been anything to stop an outside IR35 role being worked through an umbrella?

IR35 is completely irrelevant if working via an umbrella. The whole question just fails to arise. If you're working via an umbrella, you're employed, end of story.

[gaz777]

Hence why so many company’s are just saying no limited company contractors and not making a IR35 decision


Sent from my iPhone using Contractor UK Forum

I hadn't heard of SDS before.
So from my reading of that, the client will do an SDS inside, despite CEST giving no result and not doing a manual determination?
This would fail the reasonable care measure, but hmrc are unlikely to litigate because someone is paying too much tax. Equally, I'm unlikely to litigate as it means the client will probably withdraw the contract.
And an umbrella wouldn't allow expenses as it's difficult to argue SDC doesn't apply when there's an inside SDS?

That sucks...

[BABABlackSheep]

Updated an earlier post sorry.

Certain companies do offer direct SIPP transfers.

[eek]

Updated an earlier post sorry.

Certain companies do offer direct SIPP transfers.

Could you correct the rest of it as well please.
As what you say is wrong come April.