Umbrella v PAYE Umbrella v PAYE
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Thread: Umbrella v PAYE

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    Default Umbrella v PAYE

    My understanding is a PAYE employee has all taxes deducted before receiving their pay.

    The same is true for a contractor using an umbrella company.

    However, using an umbrella company incurs a fee.

    So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?

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    Quote Originally Posted by smileyface View Post
    My understanding is a PAYE employee has all taxes deducted before receiving their pay.

    The same is true for a contractor using an umbrella company.

    However, using an umbrella company incurs a fee.

    So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?
    No.
    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

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    Quote Originally Posted by smileyface View Post
    My understanding is a PAYE employee has all taxes deducted before receiving their pay.

    The same is true for a contractor using an umbrella company.

    However, using an umbrella company incurs a fee.

    So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?
    Yes
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    Quote Originally Posted by northernladuk View Post
    Yes
    What about radiator bleeding allowances?
    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

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    Quote Originally Posted by Old Greg View Post
    What about radiator bleeding allowances?
    But the increase costs of gladiator training writes that off.
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    Quote Originally Posted by northernladuk View Post
    But the increase costs of gladiator training writes that off.
    Not for registered chutney spoon recycling technicians.
    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

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    Quote Originally Posted by Old Greg View Post
    Not for registered chutney spoon recycling technicians.
    Dammit. I hate it when you're always right.
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    Quote Originally Posted by smileyface View Post
    My understanding is a PAYE employee has all taxes deducted before receiving their pay.

    The same is true for a contractor using an umbrella company.

    However, using an umbrella company incurs a fee.

    So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?
    Not if the contract gross rate is higher than the employees gross equivalent salary (and if it isn't you should consider a career change).
    His heart is in the right place - shame we can't say the same about his brain...

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    Quote Originally Posted by smileyface View Post
    My understanding is a PAYE employee has all taxes deducted before receiving their pay.

    The same is true for a contractor using an umbrella company.

    However, using an umbrella company incurs a fee.

    So is it true a contractor using an umbrella company will ALWAYS take home less than a PAYE employee?
    Maybe.
    I may not know Karate, but I know crazy and I'm not afraid to use it

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