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Difference Between PAYE and LTD?

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    #1

    Difference Between PAYE and LTD?

    Looking at a gig, PAYE is £13 per hour and have been told LTD if £15 per hour!?!?!?

    WTF so that £2 has got to cover business insurance, NI and Income Tax and corporation tax!?!?!

    What would be a sensible reply, "What is your margin on that?"
    Pleomax

    This is an unusual paragraph. I'm curious as to just how quickly you can find out what is so unusual about it. It looks so ordinary and plain that you would think nothing was wrong with it. In fact, nothing is wrong with it! It is highly unusual though. Study it and think about it, but you still may not find anything odd. But if you work at it a bit, you might find out. Try to do so without any coaching!
    Tags: None
    #2
    Originally posted by pleomax View Post

    What would be a sensible reply,
    I would tell 'em to clean their own god damn toilets.
    The Mods stole my post count!

    Comment

      #3
      Originally posted by Pickle2 View Post
      I would tell 'em to clean their own god damn toilets.

      Comment

        #4

        How ever this isnt in IT as i may have said before it is in procurement/project admin.
        We sell our soul for £5!
        Pleomax

        This is an unusual paragraph. I'm curious as to just how quickly you can find out what is so unusual about it. It looks so ordinary and plain that you would think nothing was wrong with it. In fact, nothing is wrong with it! It is highly unusual though. Study it and think about it, but you still may not find anything odd. But if you work at it a bit, you might find out. Try to do so without any coaching!

        Comment

          #5
          Originally posted by pleomax View Post

          How ever this isnt in IT as i may have said before it is in procurement/project admin.
          We sell our soul for £5!
          The people I've known in procurement usually sell their souls for tickets to the races, boxes at the football, bottles of Scotch, cases of wine, free DVD players, laptops, software, free lunches, the odd continental city break in the guise of a 'conference' ...

          If you do the government exams in procurement, you'll be on a damn site higher rate, too.
          Drivelling in TPD is not a mental health issue. We're just community blogging, that's all.

          Xenophon said: "CUK Geek of the Week". A gingerjedi certified "Elitist Tw@t". Posting rated @ 5 lard points

          Comment

            #6
            Originally posted by pleomax View Post
            Looking at a gig, PAYE is £13 per hour and have been told LTD if £15 per hour!?!?!?

            WTF so that £2 has got to cover business insurance, NI and Income Tax and corporation tax!?!?!

            What would be a sensible reply, "What is your margin on that?"
            The extra payment is to cover the Employer's NIC that the agency would have to pay you if you were on their books.

            Employer's NIC is currently 12.8% so as the uplift is 15.38%, you gain slightly!

            Although you have taxes to pay through a limited company, you would also have taxes to pay as PAYE - overall you should come out top.

            Try not to get too concerned with the various taxes, what you should concentrate on is to maximise your net pay and not worry too much whether it is VAT, Corporation tax etc that you pay.

            As an example, we could get the Corporation Tax you pay down to zero, although you will pay a huge amount of PAYE & NIC.

            I hope this helps.

            Alan

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