retired_mnw_cna

I'm now working for myself, hiring my limited skills out to whichever firms need them. I have been told it is better to go down one of these two routes to try to save some tax. Does anyone have any idea of the relative advantages and disadvantages.

retired_mnw_cna

So much for asking the OTF as an idea.

retired_audberry

Nothing to do with Resident Evil then?

retired_krishinf

PAYE.. Umbrella companies pay you as PAYE, and you are effectively their employee. You get paid a regular amount and file your expenses whihc you get back.

Managed service companies, effevtivley run as a company for you so that you can reduce the amount of NIC you pay and increase your take home pay... not via PAYE income, because NIC has to be taken out... although this has effectively been closed out by recent tax changes.

Its been a while since i was contracting, or even working in the UK, so lawas may well have changed even more.

retired_kikiiscwazy

Read my mind

retired_bec8643

I only came in as i thought it was to do with Resident evil

retired_mnw_cna

Someones if going to have to explain the Resident Evil bit as I've never played it. Where do umbrella companies come into it exactly?

retired_audberry

Wiki says - Umbrella Corp

retired_labradorrose

Dont bother with Umbrella companies- you end up paying all your tax with feck all write off's AND you pay a comission fee every month

Just set-up your own Ltd company and keep receipts for everthing (and get a bloody good accountant).

For instance I cant drive, so I get a taxi to and from work every day, but I can write it's all tax deductable in Ireland so it takes a massive whack off my Tax bill end of year..

Not that much is applicable, but transport and part of your milage is one thing, running costs of your office another etc...