I've been out of the UK for 12 years now back in London and working again. I've just got my first role via an agency and I'm on their payroll under PAYE which is fine as I have a full personal allowance and are actively looking for a new role. I've now gotten a better role starting next week which is also via PAYE I was offered the option of being paid via my own ltd by the agency but I'm not ready yet.
I am setting up a new company of my own as in the long term I want to offer technology solutions to different businesses, but at the moment I need to work to pay the bills and to be able to invest in the product area I am interested in and so on.
I don't have the company registered yet, so no bank account or insurance or anything setup yet.
I understand now about IR35 and being in or outside, that the employer now needs to make the determination after April and the % difference I need to charge if insider or outside so I am in no different a position etc.
What I am less clear on is what the difference is if I set up my own PAYE invoice a client directly and pay myself a salary. As I want to build up my business I can pay myself via PAYE in the same way as an agency does but cut out the middle man and earn more in total, all via PAYE.
Doing things this way means I can pick up more work and gradually build my company up and so on then in time I am working for lots of people and not a contractor at all anymore.
So my question is if I charge a client £120K per annum + VAT and pay myself the same salary adjusted for employers NIC and pension how does that work with the changes coming along, if I can show that I am paying PAYE do the IR35 deductions not need to be made?
So sort of can I be my own umbrella company?
Thanks
I am setting up a new company of my own as in the long term I want to offer technology solutions to different businesses, but at the moment I need to work to pay the bills and to be able to invest in the product area I am interested in and so on.
I don't have the company registered yet, so no bank account or insurance or anything setup yet.
I understand now about IR35 and being in or outside, that the employer now needs to make the determination after April and the % difference I need to charge if insider or outside so I am in no different a position etc.
What I am less clear on is what the difference is if I set up my own PAYE invoice a client directly and pay myself a salary. As I want to build up my business I can pay myself via PAYE in the same way as an agency does but cut out the middle man and earn more in total, all via PAYE.
Doing things this way means I can pick up more work and gradually build my company up and so on then in time I am working for lots of people and not a contractor at all anymore.
So my question is if I charge a client £120K per annum + VAT and pay myself the same salary adjusted for employers NIC and pension how does that work with the changes coming along, if I can show that I am paying PAYE do the IR35 deductions not need to be made?
So sort of can I be my own umbrella company?
Thanks
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