The amended legislation obligates the person or entity paying you to deduct tax on your behalf, meaning that your tax affairs are completely taken out of your hands. Not only this, but employer’s National Insurance Contributions will fall due at 13.8% and this will in most cases be taken from your rate. Your net take home will unnecessarily be thousands less than it currently is, but this need not be the case when operating through us.
Operating through us will enable you to retain the same tax status as you currently do with full control and autonomy whilst meeting the conditions for “employment” as defined by HMRC. Similarly, we remove the administrative burden and cost from the agency, whom under the amended legislation are obligated to operate a cumbersome payroll to deduct employee tax and NIC on your behalf.
Your income will be completely unaffected through us and remain as it always has, in fact in most cases we offer enhancement to your current arrangements through improved payment terms with regular periodic payments regardless of receipts from the agency or end client.
To achieve this we operate a complex model which we’ve coined the Advanced Umbrella, it is fully compliant with all UK legislation and is very much UK based.
Whilst our Advanced Umbrella initially employs you much like any other umbrella company, this is where the similarities end. Beyond this we facilitate a complex engagement model whereby you continue to operate through the umbrella company directly and with our partner in the provision of your services, making up the balance in your personal service company’s revenue. Since our partner are unrelated to the services you provide in the Public Sector it is therefore still the responsibility of you to determine your own status.
We work with the leading recruitment agencies in the UK and act as an Umbrella Employer operating our Advanced Umbrella model between the agency and the individual service provider, and in some cases direct between the end client and the individual service provider. Amended legislation contained in the Finance Bill 2017 around responsibility for validating IR35 status will take effect from 6 April 2017; removing the responsibility from the individual service provider to the Public Sector body.
WHAT OUR UMBRELLA COMPANY PROVIDES:
– IR 35 COMPLIANCE
– MAINTAIN TAX STATUS & TAX HOME PAY
– COMPLIANCE ASSURANCE
– IMPROVED PAYMENT TERMS
– NO SCHEMES
-NO RISK TO PSC
– UK COMPANY
– NO CHANGE TO PERSON OF SIGNIFICANT CONTROL
– NO RISK TO AGENCY OR PUBLIC BODY
– ADVANTAGE OVER OWN LIMITED COMPANY
– NO SET UP OR EXIT COSTS