payerise.co.uk
Discussion
Hi all,
Anyone in the know able to tell me how this company works?
A friend of mine has just started a temp job as a teacher in a special needs school. payerise have approached her saying they can pay her 40p per mile for the commute, £5 per day lunch for about 13 pounds per week?
I can't see how or why they can offer this?
She hasn't signed up but is clearly tempted. I'm not so sure. Too good to be true etc.
Thanks
Anyone in the know able to tell me how this company works?
A friend of mine has just started a temp job as a teacher in a special needs school. payerise have approached her saying they can pay her 40p per mile for the commute, £5 per day lunch for about 13 pounds per week?
I can't see how or why they can offer this?
She hasn't signed up but is clearly tempted. I'm not so sure. Too good to be true etc.
Thanks
Further to Nicks response; they are able to do this by treating her as a company - as opposed to an employee.
Rather than being an employee of the school or agency, they effectively employ her company.
Payrise will create an umbrella company* for her.
It's very easy, quick, painless and rewarding
With the umbrella company, she will receive extra pay (no contributions towards holidays/ sick pay.)
An umbrella company is exactly that, an umbrella company of payrise.
The company will be set up as part of payrise, but under her details.
With that in mind, she will have entitlement to offset her expenses against tax, such as mileage and food.
For example:
She earns £500 a week.
Her expenses for fuel and food come to £100.
She will then only be taxed for £400, as the £100 is offset.
I would suggest inquiring about the food expenses though, as that does seem a little low?
It is all very legal and common place, no loopholes are being broken and completely above board.
There are many, many umbrella companies out there.
It might be worth her while speaking with colleagues for recommendations.
Rather than being an employee of the school or agency, they effectively employ her company.
Payrise will create an umbrella company* for her.
It's very easy, quick, painless and rewarding
With the umbrella company, she will receive extra pay (no contributions towards holidays/ sick pay.)
An umbrella company is exactly that, an umbrella company of payrise.
The company will be set up as part of payrise, but under her details.
With that in mind, she will have entitlement to offset her expenses against tax, such as mileage and food.
For example:
She earns £500 a week.
Her expenses for fuel and food come to £100.
She will then only be taxed for £400, as the £100 is offset.
I would suggest inquiring about the food expenses though, as that does seem a little low?
It is all very legal and common place, no loopholes are being broken and completely above board.
There are many, many umbrella companies out there.
It might be worth her while speaking with colleagues for recommendations.
Eric Mc said:
And how do they counter the obvious IR35 risks?
Through an umbrella company? - Simply, you can't.Since the introduction of Managed Service Company Legislation in 2007.
Download HMRC PDF
You will be treated (taxed) as an employee.
You pay both Employer and Employee; 44%, towards the government.
22% Employee Tax.
12% Employer NIC.
10% Employee NIC.
Most umbrella companies will (legally) tweak their payments in such a way that reduces your contributions. I'm unsure how as it's been a few years since I used an umbrella company on a regular basis.
It is highly recommended to create a limited company, as this allows an increase in take-home pay whilst still contributing towards the government and, if you find a knowledgeable accountant - they may (or may not) know ways of remaining outside IR35.
On a side note, didn't CMD say they were going to abolish IR35?
Mike Raffone said:
Eric Mc said:
And how do they counter the obvious IR35 risks?
Through an umbrella company? - Simply, you can't.Since the introduction of Managed Service Company Legislation in 2007.
Download HMRC PDF
You will be treated (taxed) as an employee.
You pay both Employer and Employee; 44%, towards the government.
22% Employee Tax.
12% Employer NIC.
10% Employee NIC.
Most umbrella companies will (legally) tweak their payments in such a way that reduces your contributions. I'm unsure how as it's been a few years since I used an umbrella company on a regular basis.
It is highly recommended to create a limited company, as this allows an increase in take-home pay whilst still contributing towards the government and, if you find a knowledgeable accountant - they may (or may not) know ways of remaining outside IR35.
On a side note, didn't CMD say they were going to abolish IR35?
They are now "reviewing" it.
Swines!
One of my reasons for liking him, along with the Bonfire of the Quangos... but we know how they played that one!
Alas, that is another topic for another time ;P
Back on topic.
If your friend wishes to usse payrise, ask her to find out what other agency/ temp/ contractors are using for their umbrella companies.
40p a mile in standard, however £5 subsidiary appears very low.
Most will offer £10 minimum to cover the cost.
Ones I've used previously work from a time frame, such as:
-Leaving the house before 7am. (x amount for breakfast.)
-Being mroe than 5-miles away from home when on lunch. (x amount for lunch.)
-Returning home after 7pm. (x amount for dinner.)
One of my reasons for liking him, along with the Bonfire of the Quangos... but we know how they played that one!
Alas, that is another topic for another time ;P
Back on topic.
If your friend wishes to usse payrise, ask her to find out what other agency/ temp/ contractors are using for their umbrella companies.
40p a mile in standard, however £5 subsidiary appears very low.
Most will offer £10 minimum to cover the cost.
Ones I've used previously work from a time frame, such as:
-Leaving the house before 7am. (x amount for breakfast.)
-Being mroe than 5-miles away from home when on lunch. (x amount for lunch.)
-Returning home after 7pm. (x amount for dinner.)
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