Basic question on contractor pay rates and tax

[Liver]

I have been working as a PAYE all my working life and will soon be working for Hayes as a contractor to a client. They quoted me a premium pay rate and a base pay rate.

1) am I right in thinking that the 13.5% difference between the 2 rates is the holiday pay that comes as part of Hayed contract?

2) If I want to work out my take home pay, is it a matter of using the many tax/ salary calculators and use the Basic pay rate as the income? I found it confusing working out take home pay for contractors.


Many thanks

[stek]

Contractors don't get holiday pay as such, do you have your own Limited?

[mudskipper]

Probably best to start with the first timers guides over on the right --->

[Liver]

Stek - the Hays PAYE deal comes with holiday. Don't have a ltd company but the more I read the more it seems I should have.


Mudskipper - thanks. Will do

[SueEllen]

Stek - the Hays PAYE deal comes with holiday.

Are you direct through the agency or through an umbrella? There is a difference and you need to check your contract very carefully.

Either way they both have to pay you holiday pay.

[Liver]

SueEllen - I am with Hays not umbrella. Looking at umbrella options n ltd

[Cirrus]

Que??

I'd not heard of this Hays contract. Are others aware of this development? Are other agencies coming up with proprietary arrangements? As a contractor do you have any choice in the matter?

[SlipTheJab]

I'd not heard of this Hays contract. Are others aware of this development? Are other agencies coming up with proprietary arrangements? As a contractor do you have any choice in the matter?

Yes, refuse the role...

[pr1]

Sounds like a zero hours contract (holiday pay accrues as a proportion of the hours you've worked)

I'd suggest you speak to hayes, most of us on here are not operating through this model and will probably end up confusing you more than needs to be

[psychocandy]

OP - One piece of advice. Ignore anything Hays say to you. It will be a lie. They WILL be looking out for themselves only and not you.