RE: FN-FORUM: Umbrella Companies

date posted 1st February 2006 14:38

Ltd company sub-contracts LLP which then pays you as a partner in the
LLP. LLP is a partnership and so doesn't pay employers NI to partners
(although it would to an employee)

-----Original Message-----
From: [EMAIL REMOVED] [EMAIL REMOVED] On Behalf Of
Chatter
Sent: Wednesday, February 01, 2006 3:08 PM
To: Andy Macnaughton-Jones
Subject: RE: FN-FORUM: Umbrella Companies


> But if an offshore company benefits from favourable non-UK tax laws,
perhaps it can=20
> offer higher take-home rates without compromising its level of
service?
>
> Steve

Yes, as far as I'm aware, if income is actually earned in another EU
country, you pay the taxes of that country, and can move it around
within the EU without restriction. (Nb. If earned outside the EU, you
cannot just bring it back to UK).

But in this case you're earning it in the UK, so whoever you work for,
I'm almost certain you're subject to UK tax.

One issue could be class A (Employer) National Insurance contributions.
Companies pay a further 10% NICs to HMRC for all employees gross, on top
of what you see on your pay slip. =20

This collected by the tax beast via the UK PAYROLL system, which any
company who pays UK based staff needs to have. As far as I see it, any
offshore company will still need a UK payroll to pay UK staff, so can't
see how they can avoid paying class A NICs. =20



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