How much of an increase should I ask for?

[blazebird]

Hi all,

Looking for some advice please.

I earn £600 per day (working a 4 day week) for my client. This is through my limited company.

I'll soon have to move across to an umbrella company / PAYE thanks to IR35.

My client is worried about losing me and has asked me to suggest a day rate increase that would soften the blow of moving to PAYE. I don't put any travel expenses through my limited company as I only live an hour away. I love working there and want to continue, so I'm not looking to take the mick.

I have some idea of what to ask for but I'd be very interested to hear what others would say.

Thank you!

[ladymuck]

Calculate what you'd lose to PAYE being deducted and add an extra 10%, round it up to a nice tidy number

[mudskipper]

Hi all,


My client is worried about losing me and has asked me to suggest a day rate increase that would soften the blow of moving to PAYE.

Why not suggest to your client that your contract and working arrangements are structured to ensure that you are not subject to IR35? That benefits both you and them.

[northernladuk]

So has your role been determined inside or are they just not engaging contractors so no determination required?

To be honest you love working there so it's really up to you to give them a figure you are happy with. Going on pure finances alone you need to be sticking 30% extra on but good luck with that and you will be top of the list for cuts at the next round.

You love working there and close so might have to swallow a bit less than equivalent to stay some where you want.

[Anubis]

You should also be aware of the risks involved changing from outside to inside at the same place.

Read this - unfortunately no one can give you an answer as no one knows what will happen

[oliverson]

I'd wait to see what tomorrow brings:

Oral Questions for answer beginning on Monday 23 December 2019

(Yes the title of the page is a bit misleading!)

May all get canned. 3 questions on IR35 and 2 on the Loan Charge.

[Moomin]

You should also be aware of the risks involved changing from outside to inside at the same place.

Read this - unfortunately no one can give you an answer as no one knows what will happen

Hi,

Same place on same contract or just same place?

What if you are due for a contract to end and the same company (but different department) want to offer a new contract within IR35. Could that still be an issue?

[Anubis]

Hi,

Same place on same contract or just same place?

What if you are due for a contract to end and the same company (but different department) want to offer a new contract within IR35. Could that still be an issue?

I can't give you an answer because no one knows how HMRC will behave after April.

If nothing has fundamentally changed for you then there is nothing stopping HMRC asking clients who pay contractors to work for them who was there prior April and are still there post April; HMRC could then send out letters saying "we've identified that you're a full time employee - you previously said to us you were not. You owe us back taxes". This is the crux of the issue for a lot of people.

Staying at the same company (going from outside to inside) just makes arguing your case that you're not there like a perm more difficult since the end client has now determined you are inside (whereas before you said you were not). As the link above says...it boils down to your own appetite of risk since no one knows what will happen - i doubt HMRC know. So yes....welcome to what every contractor is now going through - it's a huge mess.