IR35 post April 2020: Choosing a legitimate Umbrella IR35 post April 2020: Choosing a legitimate Umbrella - Page 4
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  1. #31

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    Quote Originally Posted by midlandlass View Post
    The brolly will have to net you National Minimum Wage over that fill your boots

    As Northern Lad said, you can pay more that £40k in via the brolly, but they will claw back the tax over that through self-assessment probably or your tax code!
    So, if a contract paid the equivalent of 80K/year I could pay 40K into the brolly pension and at set the salary at 40K to avoid Higher Rate Tax?

  2. #32

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    Quote Originally Posted by hgllgh View Post
    So, if a contract paid the equivalent of 80K/year I could pay 40K into the brolly pension and at set the salary at 40K to avoid Higher Rate Tax?
    Yes but not quite. You can't set the salary. You are PAYE. You can move the max limit in to the pension so it isn't taxed yes but the rest will be salary. Tax will dictate what you get, not you. I think that's what you meant though?

    There will be other deductions outnofnyour take home like holiday pay as well.

    I'm sure midlandslass will send you an accurate breakdown if you need one.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #33

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    Quote Originally Posted by northernladuk View Post
    Yes but not quite. You can't set the salary. You are PAYE. You can move the max limit in to the pension so it isn't taxed yes but the rest will be salary. Tax will dictate what you get, not you. I think that's what you meant though?

    There will be other deductions outnofnyour take home like holiday pay as well.

    I'm sure midlandslass will send you an accurate breakdown if you need one.
    Thanks. Right so the Brolly makes a 'company pension contribution' of 40K and then I pay what's leftover (40K) as PAYE salary. So the only difference in that sense from my normal Ltd is that I pay PAYE on 40K instead of low PAYE + divs.

  4. #34

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    Not really. The rather pedantic point I was making is that YOU do nothing. You are employed now. You don't have a say in the process anymore. You chose you pension amount. The rest goes through the system and ends up in your pocket. It's not your job anymore.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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