MSC to Limiteds

[Cowboy Bob]

do either dp or modis try to disencourage (???) you from going PAYE?

DP Connect don't seem to. I'm not PAYE but in their "welcome pack" it's listed quite prominently as a payment option.

[jh0711]

hey bob I was just making the other poster aware that the rate will drop - you will no longer be on the same rate - yes as you say there will be no difference between take home pay (well there will be maybe a slight difference due to that other conversation)

the point I was trying to make is that if you are on £15 per hour and you ask to go PAYE with the agency they may say yes but the rate you will be on will be £13 per hour

sorry for confusion

[Cowboy Bob]

the point I was trying to make is that if you are on £15 per hour and you ask to go PAYE with the agency they may say yes but the rate you will be on will be £13 per hour

sorry for confusion

No problem.

What you say above is correct. Just worth pointing out to those that are unaware that this is because the agency is now paying the employer's NI, not the contractor and that the take home is effectively the same.

[Nixon Williams]

it is a good point Alan I believe there are VAT benefits (to do with flat rate vat - no idea of how it works)
however what about
Insurances (employers, public liability and PI)
initial cost of company formation
etc etc etc

these are all costs people would need to find money for up front when they move from MSC to LTD

We provide the set up & company formation for free, insurance cover can be sorted for about £2/300.

VAT is still charged at 17.5% but in year 1, only 12% of the gross invoices is paid over assuming you are in IT. The savings made here will more than pay for insurance cover and accountancy fees.

Alan

[jh0711]

VAT is still charged at 17.5% but in year 1, only 12% of the gross invoices is paid over assuming you are in IT

what about in year 2?

[Back In Business]

what about in year 2?

13%

[jh0711]

and year 3? is it a sliding scale or is there a limited to this benefit?

[cityboy]

We provide the set up & company formation for free, insurance cover can be sorted for about £2/300.

VAT is still charged at 17.5% but in year 1, only 12% of the gross invoices is paid over assuming you are in IT. The savings made here will more than pay for insurance cover and accountancy fees.

Alan

Can you still claim vat back on purchases?

[Bear]

stops at 13%

Claim back VAT on purchases over £2k from memory

[lukemg]

Only got contract until middle of may and no chance of renewal.
Going from MSC to brollie for last 2 months, opening a ltd is easy but closing was a right pain last time. Will go LTD when/if new contract turns up but can't rule out (light touchpaper and retreat) going perm after this one...