FOB Contract

[heycontractor]

I have been offered a 12 month contract within IR35 at the FOB. They have offered three methods for me to get paid. The question I have is obviously through which route would I take home the most money.

1) PAYE - 159 per day. This is before any income tax, student loans and NI contributions. I'm guessing this will get whittled down to circa 100 a day, perhaps less.

2) Umbrella company - 205 per day. The company I choose will make all of the necessary contributions. I can't imagine how this would lead to a higher pay than PAYE. I don't have any experience here, so would much appreciate some guidance.

3) Deemed Payroll - 179 per day. This is taking earnings through a limited company. I don't have my own limited company, but I have been working for my dad who does. Could I use my dads limited company and is the take home higher through this method? Apparently, this pay is before income tax and NI contributions, and I will also have to pay business costs such as insurance and accountancy fees. Are there any other things to consider via this methods?

I have until Friday to make a decision. I would really appreciate any guidance. Thanks

[cojak]

Read this, particularly the 2nd post.

https://www.contractoruk.com/forums/...ting-read.html

£100pd is minimum wage - literally, you'll be getting a little over that.

[jbond007]

I have been offered a 12 month contract within IR35 at the FOB. They have offered three methods for me to get paid. The question I have is obviously through which route would I take home the most money.

1) PAYE - 159 per day. This is before any income tax, student loans and NI contributions. I'm guessing this will get whittled down to circa 100 a day, perhaps less.

2) Umbrella company - 205 per day. The company I choose will make all of the necessary contributions. I can't imagine how this would lead to a higher pay than PAYE. I don't have any experience here, so would much appreciate some guidance.

3) Deemed Payroll - 179 per day. This is taking earnings through a limited company. I don't have my own limited company, but I have been working for my dad who does. Could I use my dads limited company and is the take home higher through this method? Apparently, this pay is before income tax and NI contributions, and I will also have to pay business costs such as insurance and accountancy fees. Are there any other things to consider via this methods?

I have until Friday to make a decision. I would really appreciate any guidance. Thanks

Option 2 - minimum admin hassle. And at that rate, not really worth running a limited. Wouldn't recommend using your dad's limited.

[Old Greg]

Read this, particularly the 2nd post.

https://www.contractoruk.com/forums/...ting-read.html

£100pd is minimum wage - literally, you'll be getting a little over that.

National minimum wage is literally £8.21 per hour, pre NIC etc.

205 via brolly probably ends up at 130 take home. Find a decent calculator online, OP.

[heycontractor]

Do you guys think I will take home more money via the umbrella, as opposed to PAYE?

I spoke to a few people who have worked for the FOS, and they used an umbrella, although they couldn't say whether it was more or less take home money than PAYE.

I spoke to REED who said that contractors who initially took the umbrella option would request PAYE after all of the unexpected deductions. Then again, they would say that wouldn't they, so that I opt for the PAYE route through them.

[northernladuk]

Do you guys think I will take home more money via the umbrella, as opposed to PAYE?

We can't say just like that. We don't know the charges and the like. Ask both to give you a detailed breakdown of the pay and compare. Shouldn't take them a couple of minutes to give you enough to compare.

I spoke to REED who said that contractors who initially took the umbrella option would request PAYE after all of the unexpected deductions. Then again, they would say that wouldn't they, so that I opt for the PAYE route through them.

Im not so sure they are being that devious. Could be something to do with umbrellas holding money back for holiday pay or pension deductions the agency offering might not.
Again. Ask both for a clear breakdown of their charge and a figure you'll get as take home and all will become clear.

You've mentioned FOB in the title and FOS in your last post?