Bear with me on this one as it snuck up unexpectedly due to my naiveite!
I had started working in IT through an agency, really enjoyed it, they paid me weekly after deducting NI & tax.
However that contract came to an end and I applied for a job in the same sector recently, via a different agency, have been offered the job...but it turns out I will need to go through an umbrella company! I've never been paid this way before and was a bit taken aback, especially as it hadn't crossed my mind that it might be paid this way, and the agency didn't mention it beforehand (only the hourly rate).
I tried the online calculator of an umbrella company my new agency recommended, and as I don't have much in the normal way of work which would be offfset as expenses, was absolutely horrified at the amount of tax which will come off (NI employee & employer, income tax etc).
I've been hearing a lot about setting up a Limited Company but am worried about IR35- my position is to cover a temporary growth in workload so doesn't cover a permanent position in that sense, but I take it that it's not that straightforward..?
Any advice appreciated
I had started working in IT through an agency, really enjoyed it, they paid me weekly after deducting NI & tax.
However that contract came to an end and I applied for a job in the same sector recently, via a different agency, have been offered the job...but it turns out I will need to go through an umbrella company! I've never been paid this way before and was a bit taken aback, especially as it hadn't crossed my mind that it might be paid this way, and the agency didn't mention it beforehand (only the hourly rate).
I tried the online calculator of an umbrella company my new agency recommended, and as I don't have much in the normal way of work which would be offfset as expenses, was absolutely horrified at the amount of tax which will come off (NI employee & employer, income tax etc).
I've been hearing a lot about setting up a Limited Company but am worried about IR35- my position is to cover a temporary growth in workload so doesn't cover a permanent position in that sense, but I take it that it's not that straightforward..?
Any advice appreciated
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