Umbrella v Umbrella CIS v PAYE

[JamesC34]

No. PAYE is the agency running Payroll (or client) for a temp (inside) contract. FTC is effectively a temporary contract of employment getting all the rights the employees get. FTC tends be direct with the client the agency rarely employs for clients FTC requirements

https://topcv.co.uk/career-advice/ft...pecific%20task.

You seem to know your stuff.
So what is better in your opinion? PAYE or umbrella?
It is a 6 month outside IR35 contract.

[eek]

You seem to know your stuff.
So what is better in your opinion? PAYE or umbrella?
It is a 6 month outside IR35 contract.

Hang on you said it was inside?

And if you option is PAYE / Umbrella (which it won't be if it's outside) you need the actual figures from the Key Information Document you should have been given because we really can't answer that question for you.

The only way I could answer that question is for 1 particular scenario

• Inside IR35 contract
• 100% remote contract or very local client (so no travel)
• Desire to pay as much as possible into a pension
• In which case go umbrella...

[northernladuk]

Hang on you said it was inside?

And if you option is PAYE / Umbrella (which it won't be if it's outside) you need the actual figures from the Key Information Document you should have been given because we really can't answer that question for you.

The only way I could answer that question is for 1 particular scenario

• Inside IR35 contract
• 100% remote contract or very local client (so no travel)
• Desire to pay as much as possible into a pension
• In which case go umbrella...

I'd concur with the above and would be going umbrella as well. It's likely if you chose umbrella the agent (assuming there is one) will offer you the standard list of the big providers, Parasol, Giant, Paysteam etc... if they are flexible enough to let you nominate your own then your best bet is Clarity Umbrella.

You seem to know your stuff.

Don't let initial impressions fool you

[cojak]

You seem to know your stuff.
So what is better in your opinion? PAYE or umbrella?
It is a 6 month outside IR35 contract.

PAYE = Agent pays you (and takes out appropriate amount of tax - which they WILL DO because they're on the hook to HMRC that you'll pay it).

Umbrella = the umbrella pays you (and takes out appropriate amount of tax - which they WILL DO because they're on the hook to HMRC that you'll pay it, but they'll also put some into a pension pot if you want).

You'll note that irrespective of it being outside IR35 you will be paying the appropriate amount of tax.

(Note: appropriate = appropriate for an inside IR35 contract, outside IR35 = Ltd and only you are on the hook for tax).

[lucyclarityumbrella]

You seem to know your stuff.
So what is better in your opinion? PAYE or umbrella?
It is a 6 month outside IR35 contract.

Hi JamesC34 ,

For PAYE they should be quoting you a taxable salary rate, this is subject only to Employees NI and PAYE tax.
For Umbrella it is an assignment rate, this is subject to employment costs (ERs NI, Apprenticeship levy and the umbrella margin) before reaching your taxable salary.

If you want me to have a look at what the umbrella rate converts to as a taxable salary then let me know the rate they are offering.