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Umbrella or not to Umbrella?

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    Umbrella or not to Umbrella?

    Hello all,

    I have been contracting for couple of years (inside IR35). I get paid directly from my employer and the tax and NI is deducted at the source, I get the net pay. I currently do not have any pension or holidays. If I take leave, I don't get paid.

    I have been looking for a Umbrella company to sort out my annual leave, pension, expenses etc, however I have not found a single Umbrella company with a near 100% positive reviews. Most of them have of a large numbers of negative reviews such as issue with the payments, salary not paid on time, expenses not paid, slow response, money held, unhelpful and rude, delay in response etc.

    My question is, is it still worth / better off going with a Umbrella company or keep contracting with my current arrangements?


    Many thanks,
    CDP90







    #2
    lucyclarityumbrella
    Take a look at Claire Umbrella - Lucy from there posts on here.

    Although my bigger concern is the discrepancy between this post (inside IR35) and your last, where you were billing direct from your LTD.
    Is there something you’re not telling us?
    …Maybe we ain’t that young anymore

    Comment


      #3
      I'd also recommend Lucy at Clarity Umbrella. Partly because IMO they are best around and partly because you think your client is your employer.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Thanks all, happy to have a chat and explain it all to you if that helps? Then you can decided the best option for you

        Comment


          #5
          Originally posted by WTFH View Post
          lucyclarityumbrella
          Take a look at Claire Umbrella - Lucy from there posts on here.

          Although my bigger concern is the discrepancy between this post (inside IR35) and your last, where you were billing direct from your LTD.
          Is there something you’re not telling us?
          Thanks tgat explains his questions

          He was receiving deemed payments from his agency / end client which completely screws up pensions because they weren't thought about / were too complex when the halfbaked plan was implemented.

          So to answer the OPs question - a good quality umbrella firm will

          sort out your annual leave (although it will come out of the day rate the company pays you)
          sort out your pension abd allow it to be taken from your day rate before any deductions (except the umbrella fee)
          won't give you expenses (because 1 -you've been there 2 years so you never could & 2 they haven't been allowed to since 2016.
          pay you on the day they receive the money
          don't take secret deductions

          And there is a reason why we recommend Clarity - because we know that Lucy and co do all the above - and we know many of the others aren't as good.
          merely at clientco for the entertainment

          Comment


            #6
            Originally posted by WTFH View Post
            lucyclarityumbrella
            Take a look at Claire Umbrella - Lucy from there posts on here.

            Although my bigger concern is the discrepancy between this post (inside IR35) and your last, where you were billing direct from your LTD.
            Is there something you’re not telling us?
            I have no reason to hide anything. I am really surprised to read your unnecessary comment about me hiding something!

            The amount is paid to my LTD company account with the tax and NI deducted at the source. I then transfer the net pay to my personal account each month from my company's account. I am also given contractor's wage slip; from my employer/agency clearly showing the deductions.






            Comment


              #7
              Originally posted by CDP90 View Post

              I have no reason to hide anything. I am really surprised to read your unnecessary comment about me hiding something!

              The amount is paid to my LTD company account with the tax and NI deducted at the source. I then transfer the net pay to my personal account each month from my company's account. I am also given contractor's wage slip; from my employer/agency clearly showing the deductions.





              You aren’t hiding anything but it’s clear that you haven’t given much thought as to how you are being paid. Because deemed payments are absolutely insane and screw up your pension options..
              merely at clientco for the entertainment

              Comment


                #8
                You aren’t hiding anything but it’s clear that you haven’t given much thought as to how you are being paid. Because deemed payments are absolutely insane and screw up your pension options..
                OK, I'm in a similar position to the OP and I have tried thinking about it, but my brain is small and perhaps you could elaborate further?

                I already have a Ltd company and have been offered some inside IR35 work. If I take it my pension options seem to be
                1. Use Umbrella that allows Salary Sacrifice into a pension
                2. Use MyCo and claim personal pension tax relief on contributions through SATR

                Now, as I understand it, (2) isn't as advantageous as (1) since you only get relief on the income tax, not the NI.

                However, you don't have to pay for an Umbrella company and also have the less concrete benefit of not having another party in the mix (assuming you will be running you own company anyway).

                What I'm trying to see is how much (2) costs me compared to (1). Is there any calculators that can help here?

                Of course I will "ask my accountant" but since they have a vested interest in me continuing to require their services rather than running off to an Umbrella, I'd rather check this independently.

                Comment


                  #9
                  Originally posted by supersteamer View Post

                  OK, I'm in a similar position to the OP and I have tried thinking about it, but my brain is small and perhaps you could elaborate further?

                  I already have a Ltd company and have been offered some inside IR35 work. If I take it my pension options seem to be
                  1. Use Umbrella that allows Salary Sacrifice into a pension
                  2. Use MyCo and claim personal pension tax relief on contributions through SATR

                  Now, as I understand it, (2) isn't as advantageous as (1) since you only get relief on the income tax, not the NI.

                  However, you don't have to pay for an Umbrella company and also have the less concrete benefit of not having another party in the mix (assuming you will be running you own company anyway).

                  What I'm trying to see is how much (2) costs me compared to (1). Is there any calculators that can help here?

                  Of course I will "ask my accountant" but since they have a vested interest in me continuing to require their services rather than running off to an Umbrella, I'd rather check this independently.
                  There is very little point (And a few accounting issues) in running an inside gig through YourCo. Apart from anything else, all the money you receive will have to come straight back out again into your personal account before you can do anything with it. The only reason to hang on to YourCo is either if you have other income streams or a large pile of retained profits you can take out as needed or park in your pension fund.

                  Go umbrella. Ideally, go with Clarity.
                  Blog? What blog...?

                  Comment


                    #10
                    The only reason to hang on to YourCo is either if you have other income streams
                    Thanks - yes, that's the case here. I do (at least for now) have other work coming into my Ltd Company so I already have the overhead of keeping it going anyway.

                    I'm reluctant to add an Umbrella too, unless the savings from salary sacrifice are meaningful enough to cover the Umbrella margin and the inconvenience of having yet another party between me and my income.
                    Last edited by supersteamer; 15 March 2023, 14:31.

                    Comment

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