Umbrella companies

[lobsterbob]

Hello

I've got a start with an agency - haven't worked for an agency for years. They're insisting I use an umbrella company - can anyone reccomend someone.

What's the advantage of u/c?

Anymore info would be welcomed.

Thank you.

 

[johnboy6083]

there are no advantages. not for you anyway. the best way to be paid is CIS or proper PAYE

 

[Silly Sausage]

Depends on how long you're doing it for (& how lazy) If you're going long term, get yourself Limited, don't know about CIS (it's not the same thing, is it???!)... HM Revenue & Customs: Construction Industry Scheme When I was contracting (for the 1st time) I started with an UC for the first few weeks while I set up as Ltd. The advantage was they dealt with the Tax/NI, at a price. Basically, PAYE with a fee!

Plus, if I rember right, they'll work out your allowances for mileage etc.

 

[Deleted member 26818]

I was under the impression, that Umbrella companies had been banned by the inland revenue.
Part of the reason being, that as a Director, you are liable for any other Director's tax liabillities.
So if another Bod has been going offshore for the last 6 months, and now has been found out, you're liable, as you're both directors of the same company.
As for being paid PAYE when working for an Agency, it's a joke.
As a self employed person, you pay a set amount of NI each week, then at the end of the year, pay class 4 contributions based on your income.
With PAYE, your employer is supposed to pay a larger porportion towards NI than the you as the employee.
However, as you're working for an Agency, you pay both yours and the employer's porportion, and that is not then taken into account when you do your self assessment.