Hi! I’ve been told that I need to move from limited company to either Parasol or Paystream umbrella companies due to IR35. Ive been online and on the estimate take home calculators, Paystream seems to pay more/take less than Parasol, but obviously this calculator estimate may not be 100% accurate. Please could you advise how much the fees are for both as I can’t find the information anywhere online! And the pros/cons to either of them if you have used them? (I’m new to umbrella companies and have no clue). Thanks!
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Paystream vs Parasol - please help!
Collapse
X
-
-
Ring them and find out. While you are I the phone ask them for an expect figure.
Plenty of guides to umbrellas. Take a look at the guides to the right.
If you want information in each company use the Google method to find threads where these have been discussed.
In google type...
Paystream site:contractoruk.com/forumsLast edited by northernladuk; 20 February 2021, 14:16.'CUK forum personality of 2011 - Winner - Yes really!!!! -
You also need to understand why you are being asked this. If you are moving from outside to inside then you have been inside all along and could be on the hook for retrospective action for paying the wrong tax.
Plenty information in the IR35 reforms section.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by Danimillie View PostPaystream seems to pay more/take less than Parasol, but obviously this calculator estimate may not be 100% accurate.
Comment
-
Although on paper, these companies say they are your employer, to all intents and purposes, they are not. You never see or hear from them unless you are submitting a timesheet. They will try to upsell you on their tax return service or remind you every now and again, that as your employer, blah blah but you are just a source on income to them.
Most umbrellas charge a similar flat fee, but the tax you pay is eye watering.
From the rate you agree with your agent, after the umbrella's fee (about £100 / month), the umbrella will deduct about 15% employers tax (NI, AP levy). Yea, I know, they shouldn't; the agency should provide you with the 'employee' rate, but they don't.
Next, they'll deduct employee NI and income tax, and fudge some holiday pay deductions in there. As a welcome gift, you'll likely get a silly K tax code, assuming you to earning six figure salary. You'll enjoy getting on the phone to deal with this as the umbrella doesn't deal with HMRC and the umbrella won't change the code unless instructed to be HMRC - that's your first payslip decimated.
You'll notice that on your payslip, your salary will be the minimum wage. Yep - welcome to the 'minimum wage' club. Your 'commission' will be your pay.
So finally, once your tax code is sorted, if you plan for getting about 55% of the amount the umbrella invoices the agency for, that's about right. Welcome to PAYE contracting.Comment
-
And you aren't telling us anything we've not been saying for the past 5 years.merely at clientco for the entertainmentComment
-
Originally posted by pacontracting View PostAlthough on paper, these companies say they are your employer, to all intents and purposes, they are not. You never see or hear from them unless you are submitting a timesheet.
Comment
-
Originally posted by lucyclarityumbrella View PostNot technically true, if they are complying with employment law there are a fair few things they should do.Comment
-
Originally posted by Paralytic View Post
I hope you're doing quarterly performance reviews with your staff and have personal development plans in place for every single one of themComment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment