LTD Company or PAYE

[JamesLeon]

Hi there,

I have been offered my first contracting job which is due to start next month and last for 6-9mths. I have been offered two pay rates PAYE at £14.52 an hour or LTD at 18.20. As you can see there is fairly big difference in wage so my question is which would be better I have time to set up a ltd company through an umbrella company, would I gain a lot from this after deductions and fees, is it worth the hassle? Or should I just go through PAYE knowing my tax and NI are all going to be taken out automatically without me having to do anything?

Any advice would be welcome, as I said before I am new to contracting so go easy on me!

Thanks in advance,

James

[realityhack]

Hmm.

Click on the 'first timers' link on the right-hand menu and have a read.

It's not as simple as pro-rata 26.5k administered for you vs 32k with more admin. Do your research, you have plenty of time - it takes less than a day to get started with a brolly.

[northernladuk]

Hi there,

I have been offered my first contracting job which is due to start next month and last for 6-9mths. I have been offered two pay rates PAYE at £14.52 an hour or LTD at 18.20. As you can see there is fairly big difference in wage so my question is which would be better I have time to set up a ltd company through an umbrella company, would I gain a lot from this after deductions and fees, is it worth the hassle? Or should I just go through PAYE knowing my tax and NI are all going to be taken out automatically without me having to do anything?

Any advice would be welcome, as I said before I am new to contracting so go easy on me!

Thanks in advance,

James

Sorry I don't. I only see one wage so nothing to compare to.

[JamJarST]

Sorry I don't. I only see one wage so nothing to compare to.

you can be so mean sometimes.

[Sausage Surprise]

Are Bobs allowed to set up Ltds in this country? You are a Bob I take it, judging by the rates.

[northernladuk]

you can be so mean sometimes.

I know. I like to call it tough love. Maybe might give him some food for thought so he might actually attempt to understand his situation.

The fact he is offered both is likely to blow his IR35 out of the water as well so hope he is going to look in to that as well.

[northernladuk]

Are Bobs allowed to set up Ltds in this country? You are a Bob I take it, judging by the rates.

James Leon isn't exactly a bob name? It only has 4 letters in the last name, not 24. I would guess this is a recruitment agency contract not a contract in the sense we understand hence the rates.

[stek]

Are Bobs allowed to set up Ltds in this country? You are a Bob I take it, judging by the rates.

Anyone can even someone not British with no leave to remain and not even in the UK.

[Sausage Surprise]

James Leon isn't exactly a bob name? It only has 4 letters in the last name, not 24. I would guess this is a recruitment agency contract not a contract in the sense we understand hence the rates.

I was being facetious

[northernladuk]

I was being facetious

Damn you. You know I am going to have to google that now don't you!!