Difference Between PAYE and LTD?

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Nixon Williams replied

6 May 2009, 16:09
Originally posted by pleomax View Post

Looking at a gig, PAYE is £13 per hour and have been told LTD if £15 per hour!?!?!?

WTF so that £2 has got to cover business insurance, NI and Income Tax and corporation tax!?!?!

What would be a sensible reply, "What is your margin on that?"

The extra payment is to cover the Employer's NIC that the agency would have to pay you if you were on their books.

Employer's NIC is currently 12.8% so as the uplift is 15.38%, you gain slightly!

Although you have taxes to pay through a limited company, you would also have taxes to pay as PAYE - overall you should come out top.

Try not to get too concerned with the various taxes, what you should concentrate on is to maximise your net pay and not worry too much whether it is VAT, Corporation tax etc that you pay.

As an example, we could get the Corporation Tax you pay down to zero, although you will pay a huge amount of PAYE & NIC.

I hope this helps.

Alan
Leave a comment:
BrowneIssue replied

6 May 2009, 15:58
Originally posted by pleomax View Post

How ever this isnt in IT as i may have said before it is in procurement/project admin.
We sell our soul for £5!

The people I've known in procurement usually sell their souls for tickets to the races, boxes at the football, bottles of Scotch, cases of wine, free DVD players, laptops, software, free lunches, the odd continental city break in the guise of a 'conference' ...

If you do the government exams in procurement, you'll be on a damn site higher rate, too.
Leave a comment:
pleomax replied

6 May 2009, 15:47
How ever this isnt in IT as i may have said before it is in procurement/project admin.
We sell our soul for £5!
Leave a comment:
chicane replied

6 May 2009, 15:46
Originally posted by Pickle2 View Post

I would tell 'em to clean their own god damn toilets.
Leave a comment:
Pickle2 replied

6 May 2009, 15:33
Originally posted by pleomax View Post

What would be a sensible reply,

I would tell 'em to clean their own god damn toilets.
Leave a comment:
pleomax started a topic Difference Between PAYE and LTD?

6 May 2009, 15:29
Difference Between PAYE and LTD?

Looking at a gig, PAYE is £13 per hour and have been told LTD if £15 per hour!?!?!?

WTF so that £2 has got to cover business insurance, NI and Income Tax and corporation tax!?!?!

What would be a sensible reply, "What is your margin on that?"
Tags: None