First inside contract First inside contract
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  1. #1

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    Default First inside contract

    Apologies if this question has already been posted.

    After 30+ years in IT and 15 years as a contractor I am now about to take my first inside contract with a Public sector client. The daily rate advertised was £350 gross with payroll options of LTD/PAYE/Umbrella, I chose LTD as I am not a single entity PSC and we have other contracts and work. I am supposed to start soon but have now been told that my only payroll option is via an external company that has a product that is specifically for LTD, but they are essentially an Umbrella ltd. This means their breakdown shows after deductions(Employers NI, Apprenticeship levy, intermediary margin, then my PAYE & NI) my NET pay is £212. Should it not be law that the Recruitment agency/client advertise the real NET rate and explain the payroll breakdown from the start? This is a government agency avoiding paying taxes and dumping on the PSC

  2. #2

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    Quote Originally Posted by KarlH View Post
    Should it not be law that the Recruitment agency/client advertise the real NET rate and explain the payroll breakdown from the start?
    Possibly. But it isn't the case. Maybe lobby your MP?
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  3. #3

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    Using your argument shouldn't the agency's give you the rate after its been through your Ltd? Which they don't.

    They offer a day rate. Up to you investigate the best route to be paid and get exact breakdowns of your rate. Tons of threads about the difference in take home between brolly and PAYE. Also a load of calculators out there. This isnt new. There have been inside roles around since IR35 started and particularly when these changes hit the public sector two years ago.
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  4. #4

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    Quote Originally Posted by KarlH View Post
    Should it not be law that the Recruitment agency/client advertise the real NET rate and explain the payroll breakdown from the start? This is a government agency avoiding paying taxes and dumping on the PSC
    why would you expect a law to protect you from a lack of knowledge?
    See You Next Tuesday

  5. #5

    bored now

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    Quote Originally Posted by Lance View Post
    why would you expect a law to protect you from a lack of knowledge?
    Because we are rapidly getting to the point where it is employer to employee rather than business to business relationships.

    And come April 6th Agencies will need to issue Key Information documents with just that information.
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  6. #6

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    Quote Originally Posted by KarlH View Post
    Should it not be law that the Recruitment agency/client advertise the real NET rate and explain the payroll breakdown from the start?
    If you get offered a job for £60,000 salary do you expect that to be before or after tax?

  7. #7

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    Quote Originally Posted by KarlH View Post
    I chose LTD as I am not a single entity PSC and we have other contracts and work.
    you could consider to temporarily fire yourself from your Ltd but keep it going, get a P45 from your Ltd, and go with Umbrella for the duration of this contract. Give the P45 to the Umbrella, so you don't get a tax code for those who have 2 jobs and pay high tax. When this contract ends, you can re-hire yourself with your Ltd. Just an idea, it's not as hard as it sounds. Good luck!

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    Quote Originally Posted by eek View Post
    Because we are rapidly getting to the point where it is employer to employee rather than business to business relationships.
    I'm not sure that is the case in this instance...

    Quote Originally Posted by KarlH View Post
    <snip> I chose LTD as I am not a single entity PSC and we have other contracts and work. <snip>



    but in general terms, I agree, as more people become 'other' employees, there should be more regulation and protection for the staff...
    See You Next Tuesday

  9. #9

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    Quote Originally Posted by Lance View Post
    why would you expect a law to protect you from a lack of knowledge?
    Because he doesn't like it so it must be illegal.
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  10. #10

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    Quote Originally Posted by Lance View Post
    why would you expect a law to protect you from a lack of knowledge?
    He doesn't like it so it must be illegal.

    BTW didn't Cojak promise to close threads like this and ban the living daylights out of the poster?
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