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Potentially going PAYE (short term) - rate breakdown

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    #31
    Originally posted by Paralytic View Post
    As far as I aware, the closure of the Swedish Derogation "loophole" is to protect workers, not to stop the flexibility that umbrellas provide in allowing employees to take their holiday pay as it is accrued.

    Not that it matters much - its accrued anyway, but it'd annoy me if Umbrella's are giving illustrations that are not valid beyond April.

    Can any of our regular umbrella representatives that post here comment on this?
    Speak to Lucy @ Clarity it's because of her that I know about the change.
    merely at clientco for the entertainment

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      #32
      Originally posted by eek View Post
      Speak to Lucy @ Clarity it's because of her that I know about the change.
      It will be interesting to hear what Clarity say, as the collateral they sent me at the end of last year said:

      "You are entitled to 28 days holiday each financial year (per annum pro rata) shown as a separate entry on your payslip. By default, we deduct 12.07% of your taxable salary from your contract rate and repay this every time we make a payment to you, this means no retained holiday pay is available when you do take holiday."

      Whilst accurate now, I'd be disappointed if they know that will no longer be the case in April but had committed that information.

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        #33
        Swedish derogation has nothing to do with rolled up holiday pay. SD is being abolished but that's an AWR pay between assignments model.

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          #34
          Originally posted by PCTNN View Post
          I don't understand what people say is illegal.

          Client terminates your original contract and offers you another contract with lower rate. Same effect of when clients cut rate of x% and say take it or leave it.

          Is it fair? Probably not
          Is it illegal? Definitely not
          We have concluded that it is not illegal.
          "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
          - Voltaire/Benjamin Franklin/Anne Frank...

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            #35
            It is threads like this that give us a better understanding of the New World.

            I will make it a sticky.

            Thanks to all.
            "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
            - Voltaire/Benjamin Franklin/Anne Frank...

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              #36
              Lazy Agency or Standard Behaviour

              Originally posted by ComplianceLady View Post
              There's a requirement from April for all Agencies to issue KIDS - essentially a breakdown of pay for each engagement type, this will make it much clearer as there's a different rate to quote for outside IR35, inside IR35, PAYE & Umbrella even though the overall cost to the client and agency margin is the same. That's because, as has been mentioned, you cannot include certain statutory deductions in some of the quoted rates but you can in others. So it's really critical to understand what engagement type you're being offered.
              Hello

              An agency has a job advertised for 6 months £500 a day - Inside IR35. Prior to applying, I wanted to know the exact breakdown of this deductions and NET PAY. I was told this was not possible and to seek financial guidance. Is this just lazy agency work or are they within their rights?

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                #37
                Potentially going PAYE (short term) - what the actual f**k!

                Laziness from the agency or the agent is lazy AND thick and doesn’t know how to calculate it.

                It is DEFINITELY up to them to give you a breakdown of the rate - who the feck else is going to know?
                "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
                - Voltaire/Benjamin Franklin/Anne Frank...

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                  #38
                  Originally posted by nico View Post
                  Hello

                  An agency has a job advertised for 6 months £500 a day - Inside IR35. Prior to applying, I wanted to know the exact breakdown of this deductions and NET PAY. I was told this was not possible and to seek financial guidance. Is this just lazy agency work or are they within their rights?
                  No you don't - what you need to know is, is that £500 a day the umbrella rate or - as it should be the net rate the agency / end client will pay you via their payroll.

                  Now it's likely to be the former so it's £380 a day before employee taxes but the agency should be able to say how where that £500 needs to go.

                  Thankfully the new rules in April that compliancelady mentioned before should make things easier as they need to be - Inside IR35 contracts are employment contracts and very different duty of care requirements exist.
                  merely at clientco for the entertainment

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                    #39
                    Some I have seen today:-

                    Pay Rate: £500.00 (Inside IR35)
                    PAYE £372.50 per day + 14.54% accrued holiday + 3% pension contribution
                    *********
                    *********
                    Pay Rate to Candidate: £550 (Inside IR35)
                    PAYE £409.37 per day + 14.54% accrued holiday + 3% pension contribution
                    *********
                    *********
                    Pay Rate: £550 (Inside IR35)
                    PAYE rate: £410 per day + 12.07% accrued holiday + 3% pension contribution
                    Last edited by youngguy; 9 January 2020, 20:49.

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                      #40
                      Originally posted by youngguy View Post
                      Some I have seen today:-

                      Pay Rate: £500.00 (Inside IR35)
                      PAYE £372.50 per day + 14.54% accrued holiday + 3% pension contribution
                      *********
                      *********
                      Pay Rate to Candidate: £550 (Inside IR35)
                      PAYE £409.37 per day + 14.54% accrued holiday + 3% pension contribution
                      *********
                      *********
                      Pay Rate: £550 (Inside IR35)
                      PAYE rate: £410 per day + 12.07% accrued holiday + 3% pension contribution
                      I think holiday is optional or you can claim back end of the year or when the contract ends.


                      Sent from my iPhone using Contractor UK Forum

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