payment via Umbrella company
 

HI
I have just completed six months in Saudi and during that time I was paid from my agent to my company account. However I expect to be overseas now for 2-3 years starting the begining of this new financial year and I am therefore UK tax exempt. The problem is that if I still get paid into my company then I will have to pay tax for the income into the company. My agent will not pay me direct so I am thinking of using a umbrella company (Von Essen) to get paid through although they also want a % cut from my pay.
My agent says that a lot of contractors do this but I have not yet spoken to anyone that does this.
Has anyone out there had experience of this or is there a better way.:confused:

Re: payment via Umbrella company
 

Not understood your company only pays tax on profits. It has no profit because it pays all of its income to you as a salary. You have an overseas contract of employment with your company and therefore you are tax exempt.

Re: payment via Umbrella company
 

Thanks for that.
Does it matter that the contract is with a UK company and they will be paying me.

Re: payment via Umbrella company
 

If you have an ovesaeas contract of employment lasting a full tax year and you comply with the rules (no more than 90 days in uk etc.) Then you are tax exempt no matter where your contract is based or where you are paid. You have to pay class 1 NI for the first 52 weeks.