Electricians mates vs. Ltd co.

[Deleted member 26818]

I don’t think you quite understand SWD.
Umbrella means paying Tax, NI, employers NI and the payroll company fee.
Ltd means just paying 20% CIS tax

 

[Stan Barwik]

@spinlondon I think SWD just shortened the story. As he said, he used to run through Ltd and he can see more sense in doing that with higher turnover, about £40k.
I still see other benefits from running own business, even with small difference on + overall, just for a reason, all NIC payments go to MY pensions scheme, not someone in the middle.
Hope that will make more sense.

 

[Squid]

I don’t think you quite understand SWD.
Umbrella means paying Tax, NI, employers NI and the payroll company fee.
Ltd means just paying 20% CIS tax

I have a LTD company, going Umbrella means that you are technically self employed working as PAYE and being screwed over by the agency.

 

[Deleted member 26818]

I have a LTD company, going Umbrella means that you are technically self employed working as PAYE and being screwed over by the agency.

Yes.
The OP could save himself somewhere in the region of £170 - £180 per week by going Ltd.
Less whatever his fees for being Ltd would be.

 

[Squid]

Yes.
The OP could save himself somewhere in the region of £170 - £180 per week by going Ltd.
Less whatever his fees for being Ltd would be.

On a wage of £540 pw?

 

[Stan Barwik]

@SWD I understand, maybe that what I could save for 7 working day week.
But still, even if from standard week I could save £50 a week, that's gives me £200 a month, which is at least £2k a year...
Now, for me as a Spark mate it is good money, maybe for some people it isn't worth a hassle, but I bet that for most of people it would be, even if I would spend it on charity rather than sponsor some Umbrella bosses.

 

[Deleted member 26818]

On a wage of £540 pw?

£90 to £100 a day is a bit low I agree.
I’ve seen adverts for Mates for £150 to £180 per day.

My first pay slip or remittance advice under the Umbrella scheme for £135 per day showed my gross as being £602.
That’s £675 less the payroll fee and the Employer’s NI.

 

[Stan Barwik]

@spinlondon exactly. Gross should be £750, basically 1 day worth £150 you have worked for a handshake

 

[Deleted member 26818]

@spinlondon exactly. Gross should be £750, basically 1 day worth £150 you have worked for a handshake

Sorry, had to alter that post, as I realised I was only being paid 9 hours, not 10.

 

[Squid]

@SWD I understand, maybe that what I could save for 7 working day week.
But still, even if from standard week I could save £50 a week, that's gives me £200 a month, which is at least £2k a year...
Now, for me as a Spark mate it is good money, maybe for some people it isn't worth a hassle, but I bet that for most of people it would be, even if I would spend it on charity rather than sponsor some Umbrella bosses.

Setting up a company etc etc then having to file returns, accountancy fee's soon all add's up. Have a proper look in to it the best way it to speak to an accountant and not a load of grumbling old sparks ;o)))))