Apologies if this has been asked before, I tried to search but didn't find anything.
My current contract within the public sector runs out at the end of March, although I have had an offer to renew on a higher rate to offset the change (if my calculations are correct!).
My agent has told me if I want to continue through my Limited Company I need to invoice them my day rate minus 13.8% and 0.5%.
e.g £500 - 14.3% = £437.45.
Is this correct way? I am confused about the £8112 EmployERs NIC allowance? When is this taken into account? Or will this come back automatically via a HMRC rebate? Obviously I don't want to over pay my EmployERs NIC!
Finally charging VAT.
I believe I can continue to carry on charging VAT which will be on my full day rate (e.g. £500)? How would I pay myself the 3.5% (20%-16.5%). Does this have to go through my own companies PAYE?