Help needed: LTD vs PAYE vs Umbrella

scheming_gypsy

TonyPDHM wrote: »

Please excuse my general ignorance of employment law and taxes, but what's the significance to me of being classed as a temp?

Also, which of my options (1,2,3 or 4) would result in me being a temp?

Cheers,
Tony

if you're working for an agency as a contractor then you're a temp as it's a temporary contract rather than being a permanent employee of the company you're working for.

SteProud

TonyPDHM wrote: »

Hmmm, I'd better check with my mate who's using the umbrella company then. I'm not sure he knows he's supposed to pay NI himself.

If he's working via an umbrella then the umbrella already deducts NI.

I think the point hammyman is making is that the agency should be paying him a rate that takes the extra NI into account.

scheming_gypsy

TonyPDHM wrote: »

Hmmm, I'd better check with my mate who's using the umbrella company then. I'm not sure he knows he's supposed to pay NI himself.

The umbrella company pay it. His payslip will have the gross figure, then it'll take out their fees and then employers NI. Once they've been deducted they'll take out any expenses and then calculate the tax and employees NI

TonyPDHM

Hammyman wrote: »

The biggest expense you can claim, travel, you can also claim through PAYE.

Good to know, cheers. In actual fact travel expense is irrelevent for my particular situation anyway, as I'll be given some kind of travel permit by the water company to get me around.

SteProud

scheming_gypsy wrote: »

The umbrella company pay it. His payslip will have the gross figure, then it'll take out their fees and then employers NI. Once they've been deducted they'll take out any expenses and then calculate the tax and employees NI

this is spot on

TonyPDHM

scheming_gypsy wrote: »

if you're working for an agency as a contractor then you're a temp as it's a temporary contract rather than being a permanent employee of the company you're working for.

Thanks for the clarification. I'm fine with that (because I have no other choice). I wanted to make sure I wasn't missing something else in the definition.

TonyPDHM

SteProud wrote: »

If he's wporking via an umbrella then the umbrella already deducts NI.

I think the point hammyman is making is that the agency should be paying him a rate that takes the extra NI into account.

Ok cool, I'm with you. Cheers

SteProud

TonyPDHM wrote: »

Ok cool, I'm with you. Cheers

And Death Proof is an awesome movie

TonyPDHM

scheming_gypsy wrote: »

The umbrella company pay it. His payslip will have the gross figure, then it'll take out their fees and then employers NI. Once they've been deducted they'll take out any expenses and then calculate the tax and employees NI

Oooooooh! I hadn't realised there were two kinds of NI, employERS and employEES

Cool, thanks again!

SteProud

TonyPDHM wrote: »

Oooooooh! I hadn't realised there were two kinds of NI, employERS and employEES

Cool, thanks again!

That's where the water company is making their saving. If you aren't their employee then they don't have to pay employers' NI