PSC or Umbrella?

[Vaseline]

Hello!

I am a newcomer to this so please be gentle!

Can anyone give me some advice as to the benefits of working through an Umbrella Company compared to a Personal Service Company? I have spoken to a couple of people this morning that offer both services but i'm still a bit confused! I have worked as a permanent employee for the last 9 years and after being made redundant, I've kind of falling into the interim market.

I have a contract lined up through Reed starting next Monday.

Thank You!

[The SMG]

Originally Posted by Vaseline

Hello!

I am a newcomer to this so please be gentle!

Can anyone give me some advice as to the benefits of working through an Umbrella Company compared to a Personal Service Company? I have spoken to a couple of people this morning that offer both services but i'm still a bit confused! I have worked as a permanent employee for the last 9 years and after being made redundant, I've kind of falling into the interim market.

I have a contract lined up through Reed starting next Monday.

Thank You!

Hello Vaseline and welcome - nice name by the way...

You'll find loads of info on here about Umbrellas and Ltd's, check out the tag cloud on the forum home page. FYI - don't mention the term 'Personal Service Company' again. Certain people get very funny about it for some reason .

Good luck

G

[Malvolio]

Firstly, there is no such thing as a PSC - that is a myth invented by Gordon Brown to justify taxing some company owners differently to others. It is a Limited Company!

Secondly, there are assorted First Timer guides around. Read them, starting with this one on the PCG Website and reading the one linked at the bottom of this page

At it's simplest, you can take home around 10-15% more net with your own company, but it's a lot more complex than that. do the research first, then ask the questions.

HTH

[Bel]

Originally Posted by Malvolio

Firstly, there is no such thing as a PSC - that is a myth invented by Gordon Brown to justify taxing some company owners differently to others. It is a Limited Company!


HTH

So what you are effectively saying is this: you run a limited company payment vehicle that doesn't need to consider IR35.

This is very dangerous advice, Malvolio.

[Malvolio]

Originally Posted by Bel

So what you are effectively saying is this: you run a limited company payment vehicle that doesn't need to consider IR35.

This is very dangerous advice, Malvolio.

Rubbish. Stop trying to score points. I suggested the OP reads the authoritative sources on the the LtdCo vs Umbrella argument and the whole arena of freelance contracting . I'm not suggesting anything else than they take the time to understand the complexity of the subject, and that is no more than I have been suggesting on assorted boards for the last five years (and why I have a certain reputation for straight talking and honest, if sometimes painful, advice).

You cannot separate freelancing and IR35 sdince it is one of the factors that lead to confusion. That subject is covered in all the guides, along with a lot more significant matters that the OP almost certainly doesn't understand properly.

The world does not revolve around IR35, much as you would like it to.

[Bel]

Originally Posted by Malvolio

Rubbish. Stop trying to score points. I suggested the OP reads the authoritative sources on the the LtdCo vs Umbrella argument and the whole arena of freelance contracting . I'm not suggesting anything else than they take the time to understand the complexity of the subject, and that is no more than I have been suggesting on assorted boards for the last five years (and why I have a certain reputation for straight talking and honest, if sometimes painful, advice).

You cannot separate freelancing and IR35 sdince it is one of the factors that lead to confusion. That subject is covered in all the guides, along with a lot more significant matters that the OP almost certainly doesn't understand properly.

The world does not revolve around IR35, much as you would like it to.

That's one of the reasons I've written this guidebook (only one section is on IR35) because these issues hanve't been accurately conveyed or well communicated.

Personally, I think some of your advice is misleading - and largely motivated by your agenda to promote the PCG and to encourage membership - hence the point.

[Malvolio]

My agenda is not to promote the PCG any more than yours is to promote sales of your book, but to ensure all freelancers work professionally and are up to speed on the whole range of subjects they need to understand to work safely and legally in a very confused taxation environment. Sadly, that means I will quote from the prime sources, which is not your book but ten years of accumulated knowledge, case law, expert analyses and best practice.

I would also dispute that the PCG's Guide to Freelancing is anything other than a dispassionate, professional and entirely accurate summation of the field. What's more, it's free.

[Bel]

Originally Posted by Malvolio

My agenda is not to promote the PCG any more than yours is to promote sales of your book, but to ensure all freelancers work professionally and are up to speed on the whole range of subjects they need to understand to work safely and legally in a very confused taxation environment. Sadly, that means I will quote from the prime sources, which is not your book but ten years of accumulated knowledge, case law, expert analyses and best practice.

I would also dispute that the PCG's Guide to Freelancing is anything other than a dispassionate, professional and entirely accurate summation of the field. What's more, it's free.

Personally, I think your emotional outburst speaks for itself.

First of all, I have only just mentioned that my guidebook is coming out, I haven't formally announced it yet, let alone ranted and raved about it from day 1 since I started posting - unlike you with your persistent promotion of the PCG (which, incidentally, I would acknowledge have done some things well, if not others).

Secondly, it's an independent peer reviewed account that's been written by me, which is based on 23 years not 10 years of accumulated knowledge, prime sources, recruitment research and flexible worker case studies. I have no paid membership or supplier affiliated fees to guide it's content either or statements that claim that one of my chief objectives is to keep selling it for the next 10 years. Yes, there is a charge for it, but not as much as it costs to join the PCG, which you have to do to read a lot of their most useful content that is inaccessible to non-members.

Thirdly, you can't very well quote from my guidebook when it's not out yet.

If you're going to be credible on this forum, at least behave with decorum by trying to misreprsent my position and my behaviour, instead of decending into rant and accusing me of doing what you alone have been doing from day 1 - to promote yourself well beyond your capabilities.

[Malvolio]

Methinks the lady doth protest too much.

For the record I've made 108 posts (109 now...). Two of them explicitly mention joining the PCG as a good idea, another five suggest reading PCG-sourced material. Most of the other times I mention them is defending againdt your accusations that I'm promoting them. So let's get a little bit real, shall we?

[Rob Crossland]

Originally Posted by Vaseline

Hello!

I am a newcomer to this so please be gentle!

Can anyone give me some advice as to the benefits of working through an Umbrella Company compared to a Personal Service Company? I have spoken to a couple of people this morning that offer both services but i'm still a bit confused! I have worked as a permanent employee for the last 9 years and after being made redundant, I've kind of falling into the interim market.

I have a contract lined up through Reed starting next Monday.

Thank You!

If you have any specific technical questions then may I suggest posing on the expert forum.

Good luck in research,
Rob