I would be very worried about Ltd in the current climate as it seems that the tax man has started looking at it as many are just full time employees on a tax fiddle.
Umbrella seems to be the equivalent though its done through a company rather than an accountant. I have seen horror stories of these companies deducting the tax from your pay but not actually paying the tax and you getting a huge bill at year end.
The guidance from the RHA is your only self employed if you own the truck your driving. On that basis it will always be PAYE for me as even if your “better” off Ltd etc I don’t want to keep looking over my shoulder wondering if the taxman is coming
Paye is the lowest rate, but definitely the best option. No responsibilities, it’s all done for you. I didn’t like umbrella, feels like you’re being ripped off
As for which option was better for my pocket? Umbrella was slightly better. Nowadays I insist on paye
kcrussell25:
The guidance from the RHA is your only self employed if you own the truck your driving. On that basis it will always be PAYE for me as even if your “better” off Ltd etc I don’t want to keep looking over my shoulder wondering if the taxman is coming
This was my understanding but there are so many varying stories on this subject.
I personally would only go PAYE even if the rate is ■■■ as I don’t want the hassle
kcrussell25:
The guidance from the RHA is your only self employed if you own the truck your driving. On that basis it will always be PAYE for me as even if your “better” off Ltd etc I don’t want to keep looking over my shoulder wondering if the taxman is coming
This was my understanding but there are so many varying stories on this subject.
I personally would only go PAYE even if the rate is ■■■ as I don’t want the hassle
My personal belief is hmrc are letting this run and then will clobber people with huge backdated bills. Most people won’t be able to pay these in 1 go leading to charges and interest being added. Leading to an increased overall take even if it takes longer to get it. Or maybe I’m just cynical