Is 750 PAYE roughly the same as 750 outside IR35?

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eek replied

11 January 2022, 13:03
Originally posted by hugebrain View Post

Unfortunately it seems like it’s £100 less since holidays aren’t paid - so I guess it’s not exactly PAYE.

Yep - devil's in the detail here - I've seen an awful lot of scams being used to hide the real rate - "enhanced" PAYE is a common(ish) one, where enhanced means we are including the advanced holiday pay in the headline figure.

As I delight in point out to people, there are way more issues on the agency side of the market than in umbrellas or elsewhere.
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hugebrain replied

11 January 2022, 13:00
Originally posted by eek View Post

and should in theory also exclude 12.07% holiday pay (as the OP should be being paid holiday pay if its a standard PAYE contract).

Unfortunately it seems like it’s £100 less since holidays aren’t paid - so I guess it’s not exactly PAYE.
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eek replied

10 January 2022, 19:35
Originally posted by malvolio View Post

Snag is, the 750 quid umbrella rate includes the employer taxes and levies. So you're down 30% before you start. Take away subsistence relief, your personal taxes and umbrella fees and what you're comparing is apples and elephants.

Nope it's £750 PAYE which should mean it is after Employer NI and Apprenticeship Levy and should in theory also exclude 12.07% holiday pay (as the OP should be being paid holiday pay if its a standard PAYE contract).

The devil here is in the detail, what does the Key Information Document the Agency should have given you say?
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malvolio replied

10 January 2022, 19:27
Snag is, the 750 quid umbrella rate includes the employer taxes and levies. So you're down 30% before you start. Take away subsistence relief, your personal taxes and umbrella fees and what you're comparing is apples and elephants.
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hugebrain replied

10 January 2022, 19:04
Originally posted by jamesbrown View Post

Er, what? I think you need to re-read your question.

i know there’s something called an umbrella rate which is rubbish. Then there’s an outside IR35 rate which is not as good as it used to be since there’s these nasty dividend taxes.

I’m not really familiar with PAYE rates. But since the employer is paying their bits I assume it’s a lot better than umbrella.

Just trying to compare PAYE with outside IR35. Is it much worse?
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jamesbrown replied

10 January 2022, 18:49
Er, what? I think you need to re-read your question.
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hugebrain started a topic Is 750 PAYE roughly the same as 750 outside IR35?

10 January 2022, 18:19
Is 750 PAYE roughly the same as 750 outside IR35?

Is outside IR35 much different from the PAYE rate, since the employer would be paying their NI and apprentice bits?

Only big difference I can see is that if I rent a place in London it would cost twice as much under PAYE since not deductible.

Other than that are they about the same?
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