Low Paid Contract

[waterboy]

I am on £178 a day on a low pay contract.

This equates to about £47K a year on the basis of 5 x 7.5hr days a week.

On a PAYE calculator that works out net pay about £2836 a month.

Going through an Umbrella or Ltd company because I have very low expenditure (live near site etc) I end up getting paid less than via PAYE.

Can I opt to go PAYE or do i just have to accept that I will pay more in deductions than someone on a PAYE scheme?

[Clare@InTouch]

You could ask the client, but usually they'd then lower your salary to take account of Employer's NI and permie perks like sick pay and holiday pay.

[northernladuk]

So what you are asking is should you be a contractor or should you take a full time job with your client?

[waterboy]

So what you are asking is should you be a contractor or should you take a full time job with your client?

No I am not, there is no full time position being offered.

[Alan @ BroomeAffinity]

Even accounting for £1200 accounting fees and ZERO expenses, your limited company "take home" if you want to call it that, would be £3,200 approx. per month.

[Support Monkey]

No I am not, there is no full time position being offered.

If you go through an umbrella you are an employee of the umbrella so PAYE and NI will be the same as if your employed, you would get more if you were claiming expenses but as your not you will get normall PAYE and NI minus the umbrella charge so yes you will be worse off by the amount the umbrella charges

The only way you can go PAYE is via the agent if they allow that option, you normally only find they do this for office temps not contractors

£175 a day is not a low payed contract it is what you accepted to do the job if you need more you just need to move on, this is the joy of not being permanent you can go where ever you like when ever you like

[waterboy]

Even accounting for £1200 accounting fees and ZERO expenses, your limited company "take home" if you want to call it that, would be £3,200 approx. per month.

Oh really?!...that sounds encouraging, I did try a couple of on line Ltd company calculators and it didn't come out any where near that figure..

Are you allowed to recommend a accountant company on this board?

[waterboy]

£175 a day is not a low payed contract it is what you accepted to do the job if you need more you just need to move on,

Ah I am not complaining about my rate...I'm frankly as thick as s**t and grateful to be earning this, i only use it in comparrison to my other contracting colleagues in the same room the next lowest is £500 a day and one guy on £1K a day...

[Support Monkey]

Ah I am not complaining about my rate...I'm frankly as thick as s**t and grateful to be earning this, i only use it in comparrison to my other contracting colleagues in the same room the next lowest is £500 a day and one guy on £1K a day...

well then Their either cleverer than you or just better at negotiating

[waterboy]

well then Their either cleverer than you or just better at negotiating

They are doing different jobs but yes they are more clever than I!