Umbrella Company query

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paddy75

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My wife joined as a contractor with a firm for six months from July 8th. She was asked to open an Ltd company under umbrella. I have few questions that i need from you lads. Please help me.

1) PAYE Credit- Does she get 1830 euro for the whole or only the part of it(6 months), we lost carer's credit as well.i am thinking that she gets the whole credit for this year..am i right or wrong.
2) Does she get Directors credit, i think it is 3660 euro, does she get the full amount of this as she is going to be working only for 6 months (july-dec).
3) We had same issue last year, she worked for 4 months and lost carer's allowance totally and got only PAYE credit for 4 months which is 611 euro. She doesn't feel any encouragement for going to work and paying crehe on top it. Is she entitled for PAYE credit(1830) if she works even a month or two..

Please help us with details, we appreciate for this
 
Paddy75, this is confusing -- people dont normally set up an umbrella company -- you find one and pay them a fee to have your salary paid through them

They might have suggested that she either set up a limited company or find an umbrella company.
if you go through an umbrella you will get the paye credit in full as long as there is sufficient tax paid.

I have never heard of a directors tax credit ---but the paye credit plus the personal tax credit does equal 3660

There are normally some advantages to setting up your own limited company if it is a long term arrangement, but I do not think it would be worth it in your wifes case
 
Some umbrella firms will offer an solution whereby the person is made a director and 15% shareholder of a limited company. This effectively deems the person as self employed and means that employers Prsi doesn't need to be deducted before they are paid a gross salary.

They are easily parachuted in and then lifted back out at the end of the contract.

It sounds as though Paddy's a bit lost in all the lingo. If his wife is being asked to set up something, then she must be forming her own company. Although, I would question that advice for a short contract as she will incur incorporation and strike-off fees.

Can you get more info on this Paddy?
 
WindUp said:
Paddy75, this is confusing -- people dont normally set up an umbrella company -- you find one and pay them a fee to have your salary paid through them

They might have suggested that she either set up a limited company or find an umbrella company.
if you go through an umbrella you will get the paye credit in full as long as there is sufficient tax paid.

I have never heard of a directors tax credit ---but the paye credit plus the personal tax credit does equal 3660

There are normally some advantages to setting up your own limited company if it is a long term arrangement, but I do not think it would be worth it in your wifes case
Click to expand...

Hi WindUp, could you recommend an umbrella company, please ? Thanks in advance
 
Thank you very much for all the replies and i found that Nicky is absolutely on the ball. There is no credit called directors credit. I found that she can claim other expenses such as broadband and mobile bills. Good to know and all of you doing a very good job helping others and really appreciate for this. Sorry for late reply lads..
 
Sorry guys I was away, just come back and seen the posts, thanks Mystrikeoff and Gregor1, I found both companies are good enough I will try to contact with them
Kind Regards
Nicky
 
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