Ir35 paye & opv

[Panos]

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[wattaj]

Due to divorce and forced to sell my house, decided to take the whole 2019 off and go back to my home to Greece.

So with the start of the year started looking for a new contract and one the companies worked for as contractor for 2 years (2015-2017) wants me to go back for 3-6 months initially. However they have stated to the agency that the role will be within IR35. So far so good. (not)

The agency asked me if I want to go as PAYE through their umbrella or as PSC. I told them as PSC and going to pay any taxes needed within the IR35. After all I do not draw all my income every year and leaving at least 1/3 if not half in it because I am using my company for my future movement from contracting to selling software and other goods. Also I use it for R&D and develop the software or services (parts designs on Fusion 360).

However the agency came back with a quote from the umbrella.co.uk proposing that I would be better work under the umbrella as PAYE! On the PAYE have been told, that I will get a flat 60% of the income, including paying £150 per month!!!! on Umbrella margins and a levy!

On the OPV list (what's that?) I would be even be paid less because their "expenses" have changed to from Umbrella Margins & Apprenticeship Levy to - Apprenticeship Levy, OPV Payroll Fee, VAT on OPV Payroll Fee while Income Tax & EmployerNI is even higher!!!

Something surely much be wrong here. When confronted the agent how's that possible, received the answer that this is first time for her also someone asking to use PSC in IR35 so had to run the quote through the Umbrella.co.uk

Is it something wrong here? Is going PAYE the only option now? The money is significant less than before because the rate is the same as during the 2015-2017 period, so I only showed interest because worked for that company in the past and was a great place to work.

Also surely IR35 is for MY company to pay the taxes needed and using an umbrella I am outside IR35 effectively?

So using PAYE option AND all the extra charges, I pay with the umbrella through PAYE or OPV more than the simple IR35 through my PSC. Because of the fees and higher income taxes due to the assumption I will pay myself all the income from the company.

Which would put a good chunk of money to he 40% tax bracket. All those years paid myself enough money to stay inside the basic rate while the rest remained to the business for the future as "savings" when I want to take few months off to work on own project for a piece of software/services I would sell.

What are my options? Surely the agency cannot force me to use umbrella through PAYE or OPV yes? What happens since I have 2 more different income streams to my LTD? One from selling products/services and the other from shares investments. On top of the money from contracting?

Thank you for your assistance

I lost interest part way through your OP, but you need to understand ALL income is PAYE inside IR35: there is no retained profit as it will ALL be taken, and taxed, as salary.

Welcome to the brave new world.

[Panos]

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[GhostofTarbera]

Thank you

Time to brush my German and move there then this year

Plus NO expenses


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[wattaj]

Thank you

Time to brush my German and move there then this year

I'd try Switzerland myself. Good luck.

[Panos]

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[ChimpMaster]

Thank you

Time to brush my German and move there then this year

UK is finished in more ways than one. You're a very fortunate person if you can get out and have options abroad.

[Panos]

UK is finished in more ways than one. You're a very fortunate person if you can get out and have options abroad.

I can speak 5 languages having 22 years career as a software developer and no dependents (divorced) that is not the issue. Nor migration given that I am Greek and was living in UK for 17 years.

The issue is that even with IR35 UK has better rates and less taxes than anywhere in Europe except Luxembourg and Switzerland.
And I am just 2-4 years away contracting to retire at the age of 44-46. I will do something on my own in Greece, having a house there and life is cheap as can go by with €200-220 per month (€500-600 if you have to rent in mainland Greece away from Athens & Thessaloniki).

But IR35 throws spanner in the plans thats why wanted a clarification between PAYE umbrella and OPV umbrella to my PSC.
There are no other options to get those contracts I found.