New contract- inside ir35 - umbrella help needed New contract- inside ir35 - umbrella help needed
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  1. #1

    Nervous Newbie


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    Default New contract- inside ir35 - umbrella help needed

    hi all,

    I am moving into contracting from permanent role and it is inside ir35.
    I had read the forms and can see that we cannot get more than 60% if it is inside i35.

    Also can someone recommend better umbrella companies name with more savings if possible in terms of either pension saving or other ways to do it ?

    thanks

  2. #2

    Still gathering requirements...

    DolanContractorGroup's Avatar
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    Quote Originally Posted by kingkk View Post
    hi all,

    I am moving into contracting from permanent role and it is inside ir35.
    I had read the forms and can see that we cannot get more than 60% if it is inside i35.

    Also can someone recommend better umbrella companies name with more savings if possible in terms of either pension saving or other ways to do it ?

    thanks
    Hi kingkk,

    I hope you're well.

    If the role is definitely inside-IR35, and the client doesn't want to take you on as a limited company contractor, then you can expect to retain around 60-70% of your umbrella income. This would have obviously been more if you were an outside-IR35 contractor.

    We have an umbrella service and a limited company accountancy service, so you can use umbrella for your inside-IR35 contracts and the accountancy service for your outside-IR35 contracts (no extra charge!), and can set up a max pension for you.

    Give us a call on 01206 591000 and we'd be happy to help!


    Kind regards

    Zeeshan
    Last edited by DolanContractorGroup; 4th November 2019 at 11:34.

  3. #3

    Contractor Among Contractors


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    Is it a permanent role or a contract roles inside IR35 - they are two different things aren't they?
    Cenedl heb iaith, cenedl heb galon

  4. #4

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    Quote Originally Posted by Bluebird View Post
    Is it a permanent role or a contract roles inside IR35 - they are two different things aren't they?
    it is contract roles inside IR35

  5. #5

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    Quote Originally Posted by DolanContractorGroup View Post
    Hi kingkk,

    I hope you're well.

    If the role is definitely inside-IR35, and the client doesn't want to take you on as a limited company contractor, then you can expect to retain around 60-70% of your umbrella income. This would have obviously been more if you were an outside-IR35 contractor.

    We have an umbrella service and a limited company accountancy service, so you can use umbrella for your inside-IR35 contracts and the accountancy service for your outside-IR35 contracts (no extra charge!). Give us a call on 01206 591000 and we'd be happy to help!


    Kind regards

    Zeeshan
    So 70% is like max limit... i will call at around lunch time.

    thanks

  6. #6

    More time posting than coding

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    For inside roles the only differentiation in cost will be the charge for using the Umbrella, taxes should not be different. Consider whether you can use your own pension scheme out of Gross earnings as this will save you a few quid in NI.

  7. #7

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    Quote Originally Posted by kingkk View Post
    I had read the forms and can see that we cannot get more than 60% if it is inside i35.
    Also can someone recommend better umbrella companies name with more savings if possible in terms of either pension saving or other ways to do it ?
    Hi kingkk, your take home will be dependant on your day rate as to whether this places you as a 20% or 40% tax payer, so thats the first thing to look. If you do come across any companies offering a higher take home - do your research on here is all I will say

  8. #8

    Should post faster


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    I wouldn't get too hung up on what calculators say and what take-home pay figure you are quoted. I had an idle look into umbrellas a month or two ago and as has been mentioned above the only differences that affect what you'll earn are in the level of fees. PAYE is PAYE, everyone will deduct the same amount as tax and NI. Some providers' online calculators show more than others by assuming you work 5 days a week 52 weeks a year, which frankly I view as borderline dishonest. The only three things I would care about, in order of importance, would be:

    i) Is it a reputable company? Judge this by your own research, here and elsewhere, and having a proper conversation with them. Are they convincing, reasonable and clued-up?
    ii) How flexible can they be in terms of how you want to allocate your funds (eg pension contributions)? This only really matters if you want to do something other than taking all your funds as salary.
    iii) What is their fee?

    The final one I would frankly view as almost entirely irrelevant. The fee, unless extraordinarily out of line with the market, won't make a hill of beans difference really. Indeed I would tend to avoid the very cheapest providers as there will be an element of getting what you pay for in terms of customer service, competence etc.

  9. #9

    Fingers like lightning


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    Quote Originally Posted by kingkk View Post
    So 70% is like max limit...
    It depends on whether you are looking to make pension contributions as this will also affect the percentage

  10. #10

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    Quote Originally Posted by lucyclarityumbrella View Post
    It depends on whether you are looking to make pension contributions as this will also affect the percentage
    oh ok .. so i never had pension before as was on ict and now got another visa..
    how much we can save it in pension pot ? and what fees can be considered as normal fees for the umbrella ?

    i read that u can add business expenses and stuff like that .. really confused

    thanks

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