My client moved me from Ltd. to PAYE in April even though the IR35 reform was delayed. Their argument was that most contractors had been moved to PAYE in February so would be unfair to have some to remain on Ltd. At that time they did not allow me to go via Umbrella Companies.
Using Agency Payroll is good in the sense that they pay weekly (less credit risk) and also contribute the minimum Pension contribution (though paltry) on top of my day rates. However they deduct 14% as holiday pay and use that to pay for any holidays I take. If I take no holidays by end of year, the holiday pay is lost and not paid.
Now at time of renewal they have given option to go via Umbrella. Is it fair to say that I can ask Umbrella Company to pay me the holiday pay every month and not retain it ? Also I presume that they can do a salary sacrifice and save the 2% NI though last month I made a 20K contribution to my SIPP for recovering tax already paid.
I am trying to make up my mind as there is a fee to pay to Umbrella Company and also the fact that by switching to Umbrella company I lose my 10 holidays which I accrued from April.
Using Agency Payroll is good in the sense that they pay weekly (less credit risk) and also contribute the minimum Pension contribution (though paltry) on top of my day rates. However they deduct 14% as holiday pay and use that to pay for any holidays I take. If I take no holidays by end of year, the holiday pay is lost and not paid.
Now at time of renewal they have given option to go via Umbrella. Is it fair to say that I can ask Umbrella Company to pay me the holiday pay every month and not retain it ? Also I presume that they can do a salary sacrifice and save the 2% NI though last month I made a 20K contribution to my SIPP for recovering tax already paid.
I am trying to make up my mind as there is a fee to pay to Umbrella Company and also the fact that by switching to Umbrella company I lose my 10 holidays which I accrued from April.
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