CIS, PAYE, Umbrella Co??????

[daveparry]

I have just got a job through an agency and they want to know how i would like to be payed....would cash be ok was my first thought but on reflection I don't really know!

I am not against paying tax and NI but if i can offset stuff i would like to obviously, any thoughts?

[Eric Mc]

Oh dear.

Are you an employee?

(You have no choice in this - see what HMRC says)

[daveparry]

I am an employee working as a temp for an agency and because the company I work for has a stop on all full time recruitment I may still be a temp in 2 years time!!!

[evolution666]

Eric Mc said:

Oh dear.

Are you an employee?

(You have no choice in this - see what HMRC says)

mmmm, dont think so.


You can go limited company avoiding the PAYE route using the likes of an umbrella company, they know what you can and cant reasonably get away with (regarding expenses being offset against tax)

companies such as parasol IT, ive used them before and are pretty good. The agency will most likely be using a similar company to pay you through, my last agency MTech sent me out a form to fill in going into details about expenses such as travel, work wear, living expenses being away from home and so on.

Also, i know in my field (engineering contracts in manufacturing) agencies often can be persuaded to just go LTD, then as in my first point, you use your own umbrella company of choice which you might get a better rate with.

If the question was, can you get away with paying no tax, the answers no lol

Tax avoidance and tax fraud are quite similar in some ways, but there usually separated by a cell wall if you take the wrong route lol



Some one whos been doing it longer may have a better way of going about it,

[Eric Mc]

evolution666 said:

Eric Mc said:

Oh dear.

Are you an employee?

(You have no choice in this - see what HMRC says)

mmmm, dont think so.


You can go limited company avoiding the PAYE route using the likes of an umbrella company, they know what you can and cant reasonably get away with (regarding expenses being offset against tax)

companies such as parasol IT, ive used them before and are pretty good. The agency will most likely be using a similar company to pay you through, my last agency MTech sent me out a form to fill in going into details about expenses such as travel, work wear, living expenses being away from home and so on.

Also, i know in my field (engineering contracts in manufacturing) agencies often can be persuaded to just go LTD, then as in my first point, you use your own umbrella company of choice which you might get a better rate with.

If the question was, can you get away with paying no tax, the answers no lol

Tax avoidance and tax fraud are quite similar in some ways, but there usually separated by a cell wall if you take the wrong route lol



Some one whos been doing it longer may have a better way of going about it,

Have you read HMRC's rules on Tax Status?

You are of course, correct, in that many people seek to escape PAYE/Employee status by setting up their own limited companies or working through an Umbrella Company.
If an individual is concerned that they might be construed to be an employee and seek refuge in their own limited company or an umbrella, then I would suggest that they are obviously prime candidates for applying IR35 to their situation.

So, merely setting up a company or entering into an umbrella arrangement will not on its own help you escape PAYE?Class 1 NIC.
Other factors must be considered before deciding whether you are taxed as an employee or not.

Edited by Eric Mc on Saturday 9th October 12:10

[evolution666]

It also has to be said, whilst im posting replies to this, seriously, i wouldnt take advice from a BB, i would, have and continue to pay for my financial advice from a recognized professional company who know exactly the ins and outs of the law, which ones to flaunt and which to obey right down to the letter.

I know the route i have taken and its legal and works, the same path may not even be applicable to you, so i would have to say, the bast advice is take some proper advice, pay for it, £500 spent now may save you thousands to come

[Eric Mc]

But don't forget that some advice shown on a BB may, in fact, come from a knowledgeable professional too. It's just that it may not be obvious.

[daveparry]

Thanks chaps!