Last year, they had so many BIG media companies and cool agencies including Ogilvy, Tierney, and Seer Interactive.
I'm in IT and currently I'm being offered a position in the public sector inside IR35 via an agency and they gave me 2 options:
Option 1. An umbrella route whereby you become an employee of the umbrella, with payroll taxes deducted at source.
Option 2. A payroll services route where you retain your PSC, with deemed payroll taxes deducted at source by the payroll supplier and the balance paid to your PSC.
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I work primarily in IT and then I hustle on some IT projects of my own and one unrelated hobby. I was a sole trader so far and on my tax return used expenses for all that. But now things start becoming more complicated and more unclear as I just opened a Limited and happen to have a contract outside IR35..
Income streams:
- Very tiny outside IR35 gigs in IT. I did these as a sole trader but planning to use my Limited now.
- Long-term inside IR35 renewing contract with public sector starting end of summer.
- Pocket money from a side-hustle from my hobby - sole trader.
- 0 earning side projects. But I'll put the expenses for this under my Limited.
Tax year projection:
- Already made ~8k as a sole trader from IT projects.
- I will make about 5k in a small contract outside IR35 soon. Probably will go with my Limited.
- I will have a 3mo contract at 700/d inside IR35 from this summer and this will be extended to the end of tax year.
Expected expenses:
- Part of rent & bills (home office) for all outside IR35 gigs, side projects in IT.
- Part of rent & bills (home office) for my sole trader endeavour outside IT.
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So the main question is: should I use an umbrella for the public sector 700/d gig or my Limited?
The agency provided a list of umbrellas and I spotted some holiday pay there but not sure if this has or should have any effect on my decision. I also spoke with an accountant from cheapaccountancy but he gave me a quite generic answer that "umbrellas are less admin".
Any help is deeply appreciated since I'm not sure where I can get an advice on this anymore. I'm sure many other people are struggling with this as well.
