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But can anyone be an umbrella as far as the end client is concerned? If it's a very specific thing where they will ask to see proof of my employment/contract with the umbrella, then I'll just start googling umbrella companies (unless anyone has any recs). But if they just need it to be a ltd company then could I ask my FiL/his ltd to invoice them and I give him a cut.
Have asked my accountant so will follow their lead.
Seems like I'd lose between 1/4 and 1/3 of gross pay through an umbrella company though which seems a chunk. They've said they'll increase dayrate but by how much I don't yet know.
CYOA-
I don't know the answer, but at the very least your father in law would need to provide insurance for the work you carry out and pay you via proper payroll.
My end clients only allowed certain approved umbrellas, probably to avoid being accused of knowingly setting up tax-avoiding quasi-employment schemes.
Seems like I'd lose between 1/4 and 1/3 of gross pay through an umbrella company though which seems a chunk.
Of course - it's PAYE income tax / NI, plus a (usually fixed) fee per week for the umbrella (which also pays for stuff like insurance.
You can also claim some expenses through the umbrella. Not a lot.
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The whole point of an umbrella is that there's a clear trail showing they've complied with ir35, paying a random Ltd company is no different to paying a freelancer who's working through their own company. They'll have a list of suppliers that they'll work with.
There's plenty of calculators out there to calculate what your rate needs to be to make up for working inside ir35
chez_jay
Gewürzt
An umbrella company basically becomes your employer so they're paying all the correct tax and national insurance etc at source, the whole point of being inside ir35 is that you're paid paye and not invoicing.
You might not need to go through an umbrella company if their payroll will pay you paye but à lot of places won't do it for the hassle so just farm everything off to umbrella companies.