Net pay - Orange Genie Vs Giant

**Simon SJDaccountancy** · 9 June 2005, 13:36

Presume Giant didn't tell you about the higher rate tax you will have to pay on your dividends?

Also, if you fail IR35 you won't be able to join the Giant scheme you are referring to as that is for people outside IR35.

**Evian** · 9 June 2005, 13:46

That quote was based on a copy of the contract and using the Giant Trailblazer scheme. As far as i can tell (according to the agent, Giant and the info on their website) I would be eligible to join that scheme.

No mention was made of any dividend payments. Just of the Net pay i can expect.

What level of tax would any dividend payments attract?

**Simon SJDaccountancy** · 10 June 2005, 09:09

Umbrella

It depends on your level of earnings, but very roughly, anything you earn in excess of £32k a year will have an additional 25% tax to pay on the dividend you receive that falls above that amount.

Your tax and NI is calculated by reference to statute, and not by the whim of an umbrella Company, so the only genuine difference you will see in your income regardless of who you choose will be the differential in the prices the umbrella charges you for processing the payment.

**Bradley** · 10 June 2005, 14:36

Re:Take Home Pay

Based on gross weekly pay of 1600 and expenses of around £160 per week

Giant net pay is £1280 - 80%
Orange Genie is £938 - 59%

Sounds like all that Giant have done is take off their fee and 19% corporation tax. OG's quote may be on the basis that a salary is paid. It looks like your not comparing like with like.

Net pay - Orange Genie Vs Giant