Rate/wage, Employers NI, gross

**malvolio** · 3 January 2006, 09:17

Let's assume i am working for my own Ltd outside IR35, where the Ltd is paying the Employers NI.

If we assume you are, then what is this talk of wages?

Anyway, the rate on Jobserve for a contract is gross payment to YourCo for work done (per hour, per day, whatever). How you pay yourself from that point is up to you, but someone has to pay the Employers and Employees NICs as well as the income tax on whatever salary you take. What the equation is trying to say is that the NICs come off first, then the income tax is calculated on the remainder.

I suggest you hire an accoutant (or do some proper reading up) sharpish. How can you pretend to be a freelance if you don't understand the basics?

**pint** · 3 January 2006, 14:50

If we assume you are, then what is this talk of wages?

Yeah yeah, rates, wages, same same

How can you pretend to be a freelance if you don't understand the basics?

I'm used to the Dutch basics and was making sure the UK basics are the same. But you are right, i should hire an accountant to keep up appearances.

**malvolio** · 3 January 2006, 17:14

Yeah yeah, rates, wages, same same

No no no! Not at all. Wages are for permies. We aren't, we're freelances or conractors who charge for our services. It's a mindset thing - think like a contractor at all times and you're less likely to get screwed.

Basics are the same, but IR35 and UK contract law in general is now a minefield for small businesses. Get professional advice!

**pint** · 3 January 2006, 22:10

No no no! Not at all. Wages are for permies. We aren't, ...

I know, i know, it was a joke. Relax

I plan to join SJD, as you kindly advised previously, and PCG. Hopefully i can negotiate a contract to be IR35 friendly. Thanks for the rates explanation btw

Rate/wage, Employers NI, gross