What day rate would you expect for 9-10 day
Thanks in advance
What is the PAYE rate? Wants to be at least 30% above that just to break even with being on PAYE.
bigtwister:
What day rate would you expect for 9-10 dayThanks in advance
Look at the day rate and you want to add 15% for your tax and 20% vat ( if you are vat registered ), so if the day rate is £100 you need to be looking at £135, but add a little extra say another £10 - £15.
I would expect exactly the same for a 9-10 hour day as I would for a 15 hour day. Thats what a Day Rate is all about.
As a Ltd Co. driver you have one asset for your company to sell, you. Now its all well and good punter #1 saying I only want 8 hours of you, but you are left with 7 hours you can’t sell, because its highly unlikely that punter #2 is going to want six hours of you, 1 hour after you are done for punter #1.
When I was Ltd Co. I wouldn’t get my tacho card out of my wallet for less than £125 a day + Night Out + VAT.
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltd
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltd
Are you claiming VAT on top of that ?
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltd
So for a 15 hr day your getting £8 an hour, stuff that, day rate i’d be looking at at least £180.
Day rate is exactly that it covers a working day. Be it 6 hours or 15 the rate is the same depending on the type of work I’d go 150 per day don’t forget if you invoice night out on your invoice it’s taxable for corperation tax and vat if your vat registered so build that in to ur day rate. Most companies won’t pay above 150 per inc night out on day rate
Sent from my SM-G950F using Tapatalk
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltd
Too low 140 min
Sent from my SM-G950F using Tapatalk
Grumpy Dad:
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltdAre you claiming VAT on top of that ?
VAT reg on 27K?? The threshhold is 85K…
Grumpy Dad:
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltdAre you claiming VAT on top of that ?
Nope
scottie0011:
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltdSo for a 15 hr day your getting £8 an hour, stuff that, day rate i’d be looking at at least £180.
Yeah know that…but was told no 15 hr day… 8-11 hr days
bigtwister:
Grumpy Dad:
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltdAre you claiming VAT on top of that ?
Nope
Is this through an agency ?
£140 first 10 hours. £18ph there after plus night out. Then that way you don’t feel annoyed doing the odd 15
alix776:
Day rate is exactly that it covers a working day. Be it 6 hours or 15 the rate is the same depending on the type of work I’d go 150 per day don’t forget if you invoice night out on your invoice it’s taxable for corperation tax and vat if your vat registered so build that in to ur day rate. Most companies won’t pay above 150 per inc night out on day rateSent from my SM-G950F using Tapatalk
Not VAT reg, Will only be the odd few nights out in the month.
Will see if I can push for a bit more
Thanks
Grumpy Dad:
bigtwister:
Grumpy Dad:
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltdAre you claiming VAT on top of that ?
Nope
Is this through an agency ?
Nope…direct with firm
AndrewG:
Grumpy Dad:
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltdAre you claiming VAT on top of that ?
VAT reg on 27K?? The threshhold is 85K…
27k PAYE works out at £103.83 a day, on which you will pay tax and NI and Pension. At that PAYE rate and £120 a day Ltd.Co. the driver is £2.68 a day better off gross than the PAYE bloke or £696.80 a year assuming no extra days are worked overtime.
A PAYE driver will take home £21,423.68 if auto-enrolled at 1% into a pension.
The Ltd Co driver can pay himself £16,099.68 without paying a penny in Income Tax, (Will pay £400.32 in NI though) 260 days x 120 a day = £31,200 a year so £15,100 left to get out, guesstimating here 35% total deductions, (depends on your tax code etc,) means say another £10k into the drivers sky-rocket. Ltd Co takes home £26,099.68 and is £4,676 a year better off.
Or you can fight smart and have the company pay your mobile bill, as its a business asset. £600 a year out of the company with no tax. Give the company an office in your house, charge it rent at £300 a month. Thats another £3600 a year out of the company. Need a new laptop? Business asset, business buys it. There are some who go too far in my opinion and count date night with the Mrs as Corporate Entertainment and claim that back. To me thats out and out tax fraud but some can justify it.
Andrew, yes, VAT on £27k. We have the flat rate scheme which used to mean that you could charge VAT on sales and keep a portion. Until April 2017 it was 10% so on a £100 invoice you would charge £20 VAT but only pay £10 to the VAT man. This year it changed so that if you are a low costs business, eg spending less than 2% of turnover on stock, which an Ltd Co. driver would be, you pay 16.5% to the VAT man so £16.50 to him and only £3.50 extra to you. It doesn’t make sense to be VAT registered anymore unless you own vehicles.
nsmith1180:
AndrewG:
Grumpy Dad:
bigtwister:
Day work Mon-Fri PAYE is £27k…Quoted £120 day rate as ltdAre you claiming VAT on top of that ?
VAT reg on 27K?? The threshhold is 85K…
27k PAYE works out at £103.83 a day, on which you will pay tax and NI and Pension. At that PAYE rate and £120 a day Ltd.Co. the driver is £2.68 a day better off gross than the PAYE bloke or £696.80 a year assuming no extra days are worked overtime.
A PAYE driver will take home £21,423.68 if auto-enrolled at 1% into a pension.
The Ltd Co driver can pay himself £16,099.68 without paying a penny in Income Tax, (Will pay £400.32 in NI though) 260 days x 120 a day = £31,200 a year so £15,100 left to get out, guesstimating here 35% total deductions, (depends on your tax code etc,) means say another £10k into the drivers sky-rocket. Ltd Co takes home £26,099.68 and is £4,676 a year better off.
Or you can fight smart and have the company pay your mobile bill, as its a business asset. £600 a year out of the company with no tax. Give the company an office in your house, charge it rent at £300 a month. Thats another £3600 a year out of the company. Need a new laptop? Business asset, business buys it. There are some who go too far in my opinion and count date night with the Mrs as Corporate Entertainment and claim that back. To me thats out and out tax fraud but some can justify it.
Andrew, yes, VAT on £27k. We have the flat rate scheme which used to mean that you could charge VAT on sales and keep a portion. Until April 2017 it was 10% so on a £100 invoice you would charge £20 VAT but only pay £10 to the VAT man. This year it changed so that if you are a low costs business, eg spending less than 2% of turnover on stock, which an Ltd Co. driver would be, you pay 16.5% to the VAT man so £16.50 to him and only £3.50 extra to you. It doesn’t make sense to be VAT registered anymore unless you own vehicles.
Thanks for the in depth reply Nick
With the changes in the rules surrounding VAT you have to be very careful not to be classed as a ‘limited cost trader’ which places restrictions on the value of goods and services you can claim for, and you then have to pay 16.5% back.
bigtwister:
nsmith1180:
27k PAYE works out at £103.83 a day, on which you will pay tax and NI and Pension. At that PAYE rate and £120 a day Ltd.Co. the driver is £2.68 a day better off gross than the PAYE bloke or £696.80 a year assuming no extra days are worked overtime.A PAYE driver will take home £21,423.68 if auto-enrolled at 1% into a pension.
The Ltd Co driver can pay himself £16,099.68 without paying a penny in Income Tax, (Will pay £400.32 in NI though) 260 days x 120 a day = £31,200 a year so £15,100 left to get out, guesstimating here 35% total deductions, (depends on your tax code etc,) means say another £10k into the drivers sky-rocket. Ltd Co takes home £26,099.68 and is £4,676 a year better off.
Or you can fight smart and have the company pay your mobile bill, as its a business asset. £600 a year out of the company with no tax. Give the company an office in your house, charge it rent at £300 a month. Thats another £3600 a year out of the company. Need a new laptop? Business asset, business buys it. There are some who go too far in my opinion and count date night with the Mrs as Corporate Entertainment and claim that back. To me thats out and out tax fraud but some can justify it.
Andrew, yes, VAT on £27k. We have the flat rate scheme which used to mean that you could charge VAT on sales and keep a portion. Until April 2017 it was 10% so on a £100 invoice you would charge £20 VAT but only pay £10 to the VAT man. This year it changed so that if you are a low costs business, eg spending less than 2% of turnover on stock, which an Ltd Co. driver would be, you pay 16.5% to the VAT man so £16.50 to him and only £3.50 extra to you. It doesn’t make sense to be VAT registered anymore unless you own vehicles.
Thanks for the in depth reply Nick
^^^^^
This man does NOT need an accountant… 