Asked to go PAYE - what are the implications?

[PhilAtBFCA]

PAYE Options

Hi Lawrenso,
Interesting......
We normally allow a difference of 19% between Agency PAYE and Contract Rate to reflect Employers NI and Holiday Pay that has to be taken on by the Agency in this scenario.
I used our spreadsheet comparison tool to have a look at your circumstances and based on 100 miles a day your net income as PAYE with a 19% difference would be 58.5%, just over £56000 a year.
Umbrella I reckon would be arround 62% , £59,800 and Limited Company Inside IR35 £61,500 , 64%, Limited Company oustide £71,000 and 74%.

Please PM me ( or anyone else ) if you would like a copy, or download one from the business library on our website ( you need to register )

Hope thats of help.

[lawrenso]

It is one of the biggies (that trades under various guises) representing "Big Blue" in Manchester. I think I will quote myself out of this ie

£xx for PAYE, £XX for Umbella and £xx through company

I just hope that this isn't a sign of the times as Turion said. Trouble is at the mo I am having a hard time turning anything into even interviews - that is if they exist. I think that I need to change focus and get some development skills or Data Warehousing...

Steve

[Turion]

Don't want to be a harbinger of doom, but this type of permie rate fixed term PAYE contract lark tends to rear it's ugly head during downturns. As a permie in the 90-92 recession, my then large corporate employer filled several posts with fixed term 'temps' on lower salaries than the established permies. They did this because they could get away with it during those downturn years. In normal times they would never have done it.

During the 2002-2003 downturn these fixed term CONtracts again became more in vogue as the advantage swung to the clients, some of which would try to get contractors at permie rates.

Whatever, a real contractor would rather than submit to this humiliation.

[Peoplesoft bloke]

so long as you are happy with it, go for it.

be interesting to know why you can't possibly use your LtdCo

are they worried you'll pull a fast one and disappear? there's professional indemnity etc for that

PI isn't for that.

[scooby]

Is it spring? Name and shame...

[Turion]

Next time you talk to the agency, use this phrase

"F*** off".

WHS. The whole shabang sounds like a load of trollops, and you don't even know what the rate is they're offering. Meaning that it's probably a PAYE rate based on what the permies get. Have some pride and walk away now.

[NotAllThere]

Hi,

been contacted about a contract - but they said the end client wants people to go PAYE via the agency. Is this a fast one they are pulling, or if not what are the implications. Last rate was £50 p/h, I know that PAYE would mean me losing @40-45% and they are asking for my rate to be PAYE.

So, I know that Dividends would be gone and company would have to be put on hold or liquidated and that would mean laying off employees and those implications... but what about expenses, the round trip would be 100 miles a day etc.. would I be able to claim for that or would it be a basic permie role just through an agency?

Cheers

Steve

Next time you talk to the agency, use this phrase

"F*** off".

[jmo21]

so long as you are happy with it, go for it.

be interesting to know why you can't possibly use your LtdCo

are they worried you'll pull a fast one and disappear? there's professional indemnity etc for that

[lawrenso]

to be honest it is always quiet for my work where I live so I am always prepared to travel. The Agency are asking me to come up with a rate so I have penned a provisional £60 ph. In my last Permie role I commuted 130 miles a day but obviously lifestyles change over several years....

Cheers

Steve

[jmo21]

well, you don't mention what this salary will be.

is it worth a 100 mile round trip when not on "real" money?

is the contract market in your area really quiet?

sounds like a "fixed-term" contract or whatever they are called.

Ie. a perm job, with the word contract in the title, and only for a short time.

ie. not a real contract if you ask me

[lawrenso]

Hi,

been contacted about a contract - but they said the end client wants people to go PAYE via the agency. Is this a fast one they are pulling, or if not what are the implications. Last rate was £50 p/h, I know that PAYE would mean me losing @40-45% and they are asking for my rate to be PAYE.

So, I know that Dividends would be gone and company would have to be put on hold or liquidated and that would mean laying off employees and those implications... but what about expenses, the round trip would be 100 miles a day etc.. would I be able to claim for that or would it be a basic permie role just through an agency?

Cheers

Steve