"paying £X per day inside IR35." Been perm for a while... what does this mean?

[northernladuk]

I've seen a trend whereby some agents will offer a rate that is 'X PAYE, or Y UMBRELLA' where Y is higher than X. X seems to refer to the take-home (although it can't be 100% as your take-home will be influenced by whatever else is going on in your tax year and the Y is the rate post National Insurance but pre personal taxes. Maybe.

You sure that's not because the agency will charge a different fee for doing the work? One option they've got to spend time and effort, the other is they just throw it over the wall to the umbrella. The umbrella will, however, have charges so need to go down to the next level to see what you'll get out of the umbrella.

[northernladuk]

When a contract says "paying £X per day inside IR35" what does this mean? i.e. Is this after EErs NI and agency deduction or before?

It means you've got to put some effort in and find out exactly by speaking to the agency. Most of them don't know their arses from their elbows so check the detail every time.

Equally where it says "Rate from £650 to £782". The first figure tends to be ~18% less than the second so is this the after/before deductions views?

Generally when it's a rate between two numbers it means it's negotiable on experience but always expect the agent to come in with the lower figure regardless. They'll undoubtedly be trying to pocket the rest so push back hard if you are selected.

Generally its hard to know what's being quoted

Life is hard. Just means you've got to pull your finger out and find out.

[PerfectStorm]

I've seen a trend whereby some agents will offer a rate that is 'X PAYE, or Y UMBRELLA' where Y is higher than X. X seems to refer to the take-home (although it can't be 100% as your take-home will be influenced by whatever else is going on in your tax year and the Y is the rate post National Insurance but pre personal taxes. Maybe.

[Whorty]

Apologies, I'm sure this is written somewhere but I cant find the info

For inside-IR35 contracts:

When a contract says "paying £X per day inside IR35" what does this mean? i.e. Is this after EErs NI and agency deduction or before?

Equally where it says "Rate from £650 to £782". The first figure tends to be ~18% less than the second so is this the after/before deductions views?

Generally its hard to know what's being quoted

Thanks

To me, this means if you don't understand this, or don't know how to use Google, then you're unlikely to be worth £650 a day.

HTH

[ladymuck]

You've unfortunately posted in the wrong forum (this is the bear pit, you should have headed over to Business / Contracts or Accounting / Legal).

You will need to talk to the agency and find out for certain but often the rate quoted on adverts is the gross rate before deductions. The rate range is like all rate card ranges, the lowest they'll pay is £650 and they will go up to £782 for someone they think is worth the extra cash.

[rickshaw]

Apologies, I'm sure this is written somewhere but I cant find the info

For inside-IR35 contracts:

When a contract says "paying £X per day inside IR35" what does this mean? i.e. Is this after EErs NI and agency deduction or before?

Equally where it says "Rate from £650 to £782". The first figure tends to be ~18% less than the second so is this the after/before deductions views?

Generally its hard to know what's being quoted

Thanks