Umbrella v Umbrella CIS v PAYE

[JamesC34]

Been offered an inside IR35 contract role.
I am now being asked to choose between 'Umbrella', 'Umbrella CIS' and 'PAYE'.
This may be a dumb question but what is the difference?
I always thought that there were basically two types
Umbrella/PAYE = Inside IR35
Ltd Company = Outside IR35

I feel I am obviously missing something.

[cojak]

For IT contractors on an outside IR35 contract you are quite right. What you have in front of you is not an outside contract. CIS is the construction industry scheme. The others are umbrellas. And how they can give you PAYE with a straight face in a this instance is beyond me.

The agent is having you on.

[northernladuk]

How do you know it's an outside contract? Because the agent told you so or because you've been issued a proper SDS? No mention of LTDs? I'm wondering if the agents had your pants down by luring you in with the outside contract but it's simply not.

[eek]

So the OP has updated things to state it's an inside IR35 contract.

I haven't got a clue why CIS is being offered (as it shouldn't be) but the agency should be providing you with Key Information Documents that should show whether an umbrella or PAYE payroll is the better option.

Got the figures for both as it may be better to take the PAYE option given the increase in Employer NI come April..

[northernladuk]

So if he's now updated it...and I'd like to know why, then his question is moot. CIS is a bit odd but the other two are as standard as they come.

[cojak]

This is why I normally quote reply as the thread now is pointless.

OP - just pick a legitimate umbrella.

Edit: eek is PAYE just another term for a Fixed Term Contract?

[northernladuk]

Edit: eek is PAYE just another term for a Fixed Term Contract?

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.

[cojak]

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

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

Ah, yes of course.

[ladymuck]

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

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

FTC not FTE

[northernladuk]

FTC not FTE

What you on about. That's what I put...