Contracting question

[2something]

Probably a very basic question, but any help would be much appreciated.

If I am offered a 3 month contract with a daily rate, does the contract have to be between the company and my company, or can I just go on their payroll (IMHO this would be far easier for me).

Alternatively does this depend on the employer ?

[Eric Mc]

Depends on what you and your "employer" want to do.

If the contract is between your company and the "employer", your company could be facing IR35 issues - which would still leave you in a better tax position than being a straightforward employee of your "employer" - depending on what Gross amounts are being negotiated, of course.

[lambogenie]

almost without exception they will expect you to contract via your own or another 3rd party unmbrella ltd company.

if you go on their payroll then they have to pay employers national insurance contributions for you and administer your PAYE - expenses they usually don't want to do for temps.

[2something]

Thanks to Eric and MH for useful info, looks like I will have to start another thread looking for umbrella company recommendations.

[Eric Mc]

Have you not got your own company set up already?

[2something]

Unfortunately not one I can use for this. Given the nature of the contract there is little chance of avoiding IR35, so I figure (perhaps incorrectly) that as time is of the essence it's easier and quicker to go via an Umbrella company.

ETA in return for a small hit in paying extra tax

Edited by 2something on Monday 10th September 17:32

[Eric Mc]

What can an umbrella company do these days aside from handle you like any normal PAYE agency worker?

The government has clamped down on "umbrellas" paying people by unorthodox methods such as "dividends" or "expense" claims.