Discussing inside rates with an agent

[andymalory]

Therein lies the problem. It's misleading as you're then expected to do a load of calculations to get an idea of what you would expect to take home. If it was a PAYE rate then at least it's on the same playing field as an employee.

Exactly!

[andymalory]

And that is where all the tax issues derive from...

If agencies didn't lie / exaggerate (the latter there to keep Andy Hallett happy) we wouldn't have a tenth of the tax avoidance issues in this industry.

The problem is most don't even know they are exaggerating! They just think "this is how its done".

[andymalory]

In my experience, an inside IR 35 rate is the gross rate that would typically be paid for an outside IR35 gig. The umbrella (or whatever) then takes off their commission, ErNI, the apprenticeship levy, employer pension contributions, etc., and then income tax (according to your tax code) and EeNI before you see any money. A PAYE rate on the other hand is the gross salary payable after all the employer charges have already been taken care of.

Exactly this, but the problem is technically speaking what you are defining as 'gross' isn't actually gross. The gross rate would be the one from which your employee income tax and employee NI is derived.