Paye vs ltd

[Ravage]

Hi
Can someone please verify my conclusion.

I have a contract coming up where i have been offered one of two things.
1. Go through ltd company as per usual. VAT registered.
2. Go PAYE with a 17.5% rate increase (for not doing the ltd i assume)

My maths shows that even if I have a lot of expenses i am only marginally better going down the Ltd Co path. Not to mention the pain of sorting the accounting each month.

Can anyone verify if 17.5% is a number that makes option 2 palatable? Im thinking if it costs a couple of grand extra to not have to deal with accounting its worth it.

Thanks

[wantacontract]

go paye by the sounds of it.....since they're giving you a rate rise for it....

[northernladuk]

I'd be worried why they are offering that. Have you had the contract IR35 checked? Is it inside or what is the role and perception of you from the client? If there are IR35 problems your route may be pretty clear. I don't think you should be looking at just the bottom line here. If all that is sorted then it's back to the original question.

Are there any other options to the PAYE option? Any permie'esque perks or just the money?

[northernladuk]

go paye by the sounds of it.....since they're giving you a rate rise for it....

Is that just a complete guess?

[northernladuk]

Do any of the calculators like this help? http://www.contractorumbrella.com/calculator.html

[wantacontract]

Is that just a complete guess?

based on this from OP

My maths shows that even if I have a lot of expenses i am only marginally better going down the Ltd Co path. Not to mention the pain of sorting the accounting each month.

[WordIsBond]

17.5% is pretty good, you must be good at what you do if they want to keep you around. Is this a permanent position?

Are they also giving you any employment benefits on top of that? Pension contributions, for example? Anything else?

It is going to cost them an extra 30% by the time they add in the employer's NI.