adam277:
Is paying paid via an Umbrella scheme fine to use?
I know a few years back people got stung by dodgy umbrella companies.
But Best Connection are offering a higher rate of pay for those being paid via an umbrella firm so curious if it is worth using or not.
Umbrella means you’re not proper PAYE.
This means the employer deducts what they’ll call PAYE tax, but then keeps hold of that dosh until the end of the financial year…
If the firm folds by that point - Muggins has got to cough up all over again, as HMRC didn’t get that money you’d already paid over in good faith.
Umbrella - charge a commission.
Umbrella - still don’t let you offset your taxes, which would have been the upside of being Self-Employed.
Umbrella - won’t let you pick and choose your shifts - another upside of being your own boss.
Umbrella - doesn’t give you holiday pay, sick pay, or “rights”.
In essence, it is a complete con, waste of money, and could get you into legal bother if the outfit is dodgy enough as well.
IR35 - was supposed to end all that, I thought - so how come there’s even still a think CALLED umbrella these days?
Winseer:
adam277:
Is paying paid via an Umbrella scheme fine to use?
I know a few years back people got stung by dodgy umbrella companies.
But Best Connection are offering a higher rate of pay for those being paid via an umbrella firm so curious if it is worth using or not.
Umbrella means you’re not proper PAYE.
This means the employer deducts what they’ll call PAYE tax, but then keeps hold of that dosh until the end of the financial year…
If the firm folds by that point - Muggins has got to cough up all over again, as HMRC didn’t get that money you’d already paid over in good faith.
Umbrella - charge a commission.
Umbrella - still don’t let you offset your taxes, which would have been the upside of being Self-Employed.
Umbrella - won’t let you pick and choose your shifts - another upside of being your own boss.
Umbrella - doesn’t give you holiday pay, sick pay, or “rights”.
In essence, it is a complete con, waste of money, and could get you into legal bother if the outfit is dodgy enough as well.
IR35 - was supposed to end all that, I thought - so how come there’s even still a think CALLED umbrella these days?
because ir35 was aimed at closing the tax loopholes and the dodgy accountants/companys that exploited them. all you have to do now and is use an accoutant that has a certain bit of paper. of course this means that they charge more for thier services which is why thier cut has gone from 10-15 a week to 15-20 pounds a week.