So how does the I-PAYE way benefit real people like you?
Here are the stories of Eddie, Lucy, Dr Francis and Joanna.
Eddie is a freelance IT engineer who recently worked away from home for several years.
Eddie’s previous umbrella company applied the typical travel and subsistence costs for someone working away from home against his earnings and Eddie wasn’t left out of pocket.
But the weekly administration fee was £30 and when Eddie returned to working from home and had no expenses to claim, he was left paying for more than he bargained for.
After a discussion with one of our experts, Eddie sensibly decided to switch to I-PAYE’s I-TEMP Service.
Best Advice: I-TEMP
Reason Why: As little expenses are involved, I-PAYE focuses only on invoicing and payroll services so Eddie is not left forking out for a service he doesn’t need.
Service Cost: £12.00 per week.
Lucy is a freelance CAD Designer who previously worked through the umbrella company of her recruiter’s choice.
As she never shopped around, Lucy always paid £35.00 per week and didn’t submit any expenses as she simply commuted to the same workplace for more than two years.
But Lucy landed a new 18-month contract requiring a daily commute of 60 miles and a 10-hour work day including travel time.
After speaking to an I-PAYE expert, who took account of her exposure to a higher taxation rate and any other service requirements, it was rightly decided that Lucy should switch to I-PAYE’s I-TRAVEL service.
Best Advice: I-TRAVEL
Reason Why: Tax compliance monitoring and the processing of moderate expense claims alongside invoicing and payroll services.
Service Cost: between £13 and £22.00 per week.
Dr Francis is an oil and gas engineer with extensive and highly sought after skills who works all over the world.
He recently retired from full-time work but selects various projects on short-term contracts which require him to stay away from home.
Following a review of his agency’s Preferred Supplier List (PSL), he approached a number of service providers which immediately explored the net income achievable.
He then spoke to one of our experts who took into account Dr Francis’s numerous pensions, exposure to a higher rate of taxation and how he would be working away from home.
It was agreed for Dr Francis to join I-PAYE’s I-LODGE service.
Best Advice: I-LODGE
Reason Why: Staying away from home incurs substantial lodging costs and requires ongoing support and advice for linking various income streams as well as invoicing and payroll services. A Personal Service Company (PSC) had been considered during a follow-up case review of the advice given as part of the set-up but, as he was over 65, this was discounted as he may work in mainland Europe in the future.
Service Cost: £26.00 per week.
Joanna had been contracting in the UK for many years before taking up a contract with a British agency to work as a consultant with the European Space Agency in the Netherlands.
Joanna simply assumed that she could continue to operate through her existing umbrella provider.
The service charged £35.00 per week and the company confirmed it would be happy for her to continue. Asked about Dutch taxation, the adviser said they would account for UK taxation as that is all that was required of them.
Joanna arrived on site to be requested by her client to show them a copy of her A1 and Bergernummer which left her very confused.
Luckily, another British contractor on site advised that he used I-PAYE’s European Umbrella Company and suggested that Joanna contact his dedicated account manager who revealed that an A1 used to be called an E101 and the Bergernummer was a Dutch tax identification number.
Joanna happily signed on to I-PAYE’s European Umbrella Service safe in the knowledge that she was not building up a potential problem in either the Netherlands and/or the United Kingdom.
Best Advice: European Umbrella
Reason Why: The services were to be performed at the premises of a Dutch client.
While the A1 would mean that UK National Insurance was still payable, the Dutch authorities would have the first taxing rights on the salaries paid even if through a UK-based umbrella. In addition, due to the scarceness of skills, it would be possible and preferable to seek to be taxed only on net income after accounting for a right-off of 30% of her income to cover the extra cost of living in the Netherlands.
Service Cost: A fixed fee agreed in advance based on the contractor's unique circumstances. Fees range between £250 and £525 per calendar month.
*The above case studies are based on the real experiences of workers though names and details have been changed to protect client confidentiality.
Call the European Team today on 0151 449 3500