Advice Needed

[ukmercenary]

Hello All

Just looking for some advice really I have an interview tomorrow for a 6 month contract. If I get offered the role I wanted to use my limited company but the agency is saying I can't and I have to use them (the agency as PAYE) as its something to do with security for the role.

Have you ever heard of this seems like they are trying it on.

Also I am keeping my options open and have today gone for an interview for a perm role the problem is how on earth do I compare an hourly rate going through a limited company vs a perm role?

Just for a start I would have to take into account for a limited company: corporation tax, national insurance, out of pocket expenses, accountancy fees and others

vs

perm role which might include holiday, sick pay, pension.

I know its not easy to work out but there must be a rough guide i can use any help would be appreciated.

[Von Essen]

Is the role based in the UK? Are the agency suggesting that you effectively become a permanent member of their staff for the duration of the contract?

[ukmercenary]

Is the role based in the UK? Are the agency suggesting that you effectively become a permanent member of their staff for the duration of the contract?

yes to both

[Von Essen]

Why don't you negotiate a net monthly income arrangement with them which allows them to gross up your day rate to the client to take all the deductions into consideration? I am guessing that the requirement stems from their contractual obligation to their client to meet their security policies.

As regards other perm roles, there are plenty of net income calculators available on the web which will allow you to make direct comparisons between your current contract based income and a PAYE salary arrangement.

This one for instance:

UK PAYE Income Tax Calculator 2011 salary calculator UK. Updated for 2011 / 2012 tax year. Calculate wages pension national insurance and student loan repayments online.

[NotAllThere]

Or even the calculators on this very site.

[ukmercenary]

Or even the calculators on this very site.

I did see the ones on this site but they seem rather complicated (or maybe im a bit thick ).
Obviously the listen to Tax Man calculator is a bit miss leading in that if you just plonk in your years salary then compare this directly to a hourly rate the hourly rate does not include sick pay/holiday pay/person all things that need to factored in.

[SueEllen]

I did see the ones on this site but they seem rather complicated (or maybe im a bit thick ).
Obviously the listen to Tax Man calculator is a bit miss leading in that if you just plonk in your years salary then compare this directly to a hourly rate the hourly rate does not include sick pay/holiday pay/person all things that need to factored in.

There are no real calculators for what you want to work out.

After you worked out your net income using one of the income tax/paye calculators, it's actual very easy to work out approximate figures for yourself with your own pocket calculator for your hourly rate.

Though other contractors on here have come up with hourly rate x 100 to work out the equivalent yearly salary.

[mudskipper]

There are no real calculators for what you want to work out.

After you worked out your net income using one of the income tax/paye calculators, it's actual very easy to work out approximate figures for yourself with your own pocket calculator for your hourly rate.

Though other contractors on here have come up with hourly rate x 100 to work out the equivalent yearly salary.

Or even hourly rate * 1000