ok lets actually look at the figures then
lets say PAYE rate with agency is £20 -
the agency will chasrge the end client £20 per hour they will then add on Employers NI at 12.8% - this brings the vlaue up to £22.56 then add a bit of holiday pay on at 8.33% = £24.44
So the agency may say if you are PAYE then the rate is £20 but if you go ltd or brolly (no difference in the agencies eyes they are simply paying an invoice for services as opposed to an employee) they say the rate is £24.44 becuase they no longer need to cover the employer costs (employers Ni and Holiday Pay)
However you do not pay employers NI on the first £97 per week of your salary - so you save a bit of cash there - then after you have earned £600 ish per week the employers NI drops to 1% so you maybe make a bit more on that one.
obviously some agencies make no distinction between PAYE or Brolly and pocket the extra employer costs thus increasing their margin -
shocking bunch of Cowboys eh Bob!
lets say PAYE rate with agency is £20 -
the agency will chasrge the end client £20 per hour they will then add on Employers NI at 12.8% - this brings the vlaue up to £22.56 then add a bit of holiday pay on at 8.33% = £24.44
So the agency may say if you are PAYE then the rate is £20 but if you go ltd or brolly (no difference in the agencies eyes they are simply paying an invoice for services as opposed to an employee) they say the rate is £24.44 becuase they no longer need to cover the employer costs (employers Ni and Holiday Pay)
However you do not pay employers NI on the first £97 per week of your salary - so you save a bit of cash there - then after you have earned £600 ish per week the employers NI drops to 1% so you maybe make a bit more on that one.
obviously some agencies make no distinction between PAYE or Brolly and pocket the extra employer costs thus increasing their margin -
shocking bunch of Cowboys eh Bob!
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