Anybody heard of prime umbrella Anybody heard of prime umbrella - Page 2
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  1. #11

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    I think it would be the employers nic and ensuring we who are inside pay our own tax, ni.
    Which would obviously be a cost to her.

    I've been a temp worker for 7 years with them and it's a big multinational epos company.

    Quote Originally Posted by DolanContractorGroup View Post
    Hi Markus625,

    Can you elaborate on this please? Has the consultant said why she doesn't want to use inside-IR35 ltd companies?

    I presume it's because of the Employers NIC liability on the fee payer (agency), but I would be interested to know if it was for another reason.

    Thanks


    Zeeshan

  2. #12

    Still gathering requirements...

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    Quote Originally Posted by Markus625 View Post
    I think it would be the employers nic and ensuring we who are inside pay our own tax, ni.
    Which would obviously be a cost to her.

    I've been a temp worker for 7 years with them and it's a big multinational epos company.
    Thanks Markus625.

    Just what I thought. Some agencies/clients are being too cautious (to their own detriment), and instead they should be assessing all contractors individually and if some are found inside-IR35 then they should be negotiating higher rates with the contractor to not lose good talent.


    Thanks

    Zeeshan

  3. #13

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    Quote Originally Posted by DolanContractorGroup View Post
    Thanks Markus625.

    Just what I thought. Some agencies/clients are being too cautious (to their own detriment), and instead they should be assessing all contractors individually and if some are found inside-IR35 then they should be negotiating higher rates with the contractor to not lose good talent.


    Thanks

    Zeeshan
    I think those down the lower pay level are just treated with contempt they will just hire others who are willing to do the work for that pay.

    I think this just highlights that hmrc want companies to move away from contractors and take on permanent staff and pay their tax Ni but ask that will happen is that they will just pass it on to the contractor but thru an umbrella, if the government really wanted fair play they would discourage the use of umbrella companies.

    Going back to prime umbrella unfortunately most staff will choose the one with higher take home pay.
    Last edited by Markus625; 8th November 2019 at 10:22.

  4. #14

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    Quote Originally Posted by Markus625 View Post
    I think those down the lower pay level are just treated with contempt they will just hire others who are willing to do the work for that pay.

    I think this just highlights that hmrc want companies to move away from contractors and take on permanent staff and pay their tax Ni but ask that will happen is that they will just pass it on to the contractor but thru an umbrella, if the government really wanted fair play they would discourage the use of umbrella companies.

    Going back to prime umbrella unfortunately most staff will choose the one with higher take home pay.
    Unfortunately umbrella companies were never designed for those down the lower pay level; they were used as an alternative to running a Ltd company. Changes to legislation has ended up forcing those individuals down the umbrella route when it was probably never applicable.

    As for opting for the higher take home, eventually it will end up costing them more when (and not IF) they are caught by HMRC and end up with fines and unpaid taxes that will be clawed back. It will be one very costly mistake for those individuals.

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