Umbrella or Agency PAYE - Lisa's wisdom required

[TouchingSkies]

Hi All,

I have been using the search facility and have been able to much information regarding the contract market and how IR35 seeks out employees in a LTD disguise.

I also recognize the employers 13.8% contribution you have to pay if going via umbrella + fees, and to make sure the NI uplift is sufficient to cover this.

However I am still confused (thinking I am missing something)as to whether I am better off or not going PAYE or Umbrella :

They are offering for a standard 40 hour week:
PAYE £13
whilst for Umbrella it is £16.58 , which is roughly a 27% increase to allow for employers NI + umbrella fees.

I am on tax code 981L and would definitely fall within IR35 and would not be claiming additional expenses.

Can someone help me out?

[tarbera]

I can help you

Hi All,

I have been using the search facility and have been able to much information regarding the contract market and how IR35 seeks out employees in a LTD disguise.

I also recognize the employers 13.8% contribution you have to pay if going via umbrella + fees, and to make sure the NI uplift is sufficient to cover this.

However I am still confused (thinking I am missing something)as to whether I am better off or not going PAYE or Umbrella :

They are offering for a standard 40 hour week:
PAYE £13
whilst for Umbrella it is £16.58 , which is roughly a 27% increase to allow for employers NI + umbrella fees.

I am on tax code 981L and would definitely fall within IR35 and would not be claiming additional expenses.

Can someone help me out?

Do you have access to a '"Krell plastic educator' If so you need 3 sessions

[TouchingSkies]

Do you have access to a '"Krell plastic educator' If so you need 3 sessions

Yes I have watched Forbidden Planet, but tend to watch more polished and later films, and may be I am wording my OP wrongly, but I feel I am missing something in my calculations so seek advice?

[LisaContractorUmbrella]

Hi TouchingSkies

I have given an answer to this for you in the umbrella section

[v8gaz]

Why would you definitely fall within IR35?

[malvolio]

Why would you definitely fall within IR35?

He won't - agency temp or brolly, remember...

[v8gaz]

He won't - agency temp or brolly, remember...

But he's doing that based on the following assumption :

I am on tax code 981L and would definitely fall within IR35 and would not be claiming additional expenses.

[malvolio]

But he's doing that based on the following assumption :

OK, but on his rates Ltd Co is marginal at best. Elsewhere Lisa has shown how the Agency PAYE deal is, for the OP, the sensible option: I tend to agree.