• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Newbie Question - Agents/Umbrella Companies

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #21
    Originally posted by ok cub 2008 View Post
    Thanks. So what would Hays then charge my employer? I'm trying to nail down exactly what we mean by day rate.

    If I ask my employer for a day rate of £300, in the typical language convention would that mean Hays would charge my employer £300, and then I would have to take of the PAYE service cost of that? If that's the case, clearly I want to ask or a higher day rate.

    How would the PAYE service charge be levied upon me? Is it just deducted from my Hays payslip as an after tax adjustment? Or would it just be deducted before the final gross pay they give to me.
    Ah ... The reason nobody is giving you an exact figure is because of the devilishly complicated UK tax system.

    So for instance, if you are employed they will have to pay employers NI (not on your payslip @ 13.8%) and employee NI on your payslip.

    So in your scenario, Employer pays Hays £300, Hays adds on commission - £10 to £50 a day. Hays pays NI employer taxes at 13.8% and takes that out of your gross. Then pays you as per any online salary checker. So in the neighbourhood of £450 - £500 a day would be about right.

    Comment

    Working...
    X