Conor:
Damo_hall:
There’s still plenty of money to earn being Ltd.No there isn’t unless you ignore the holiday pay you don’t get (equivalent to 12.7% of the PAYE hourly rate), the workplace pension contributions you don’t get (equivalent to 1% but soon to be 3% of gross pay), the costs you have with setting up and running a limited company not only for the bills you pay but the cost of the “free time” you spend doing paperwork things like keeping legally required records for the WTD etc, and travelling to accountants… Another £2/hr limited over a PAYE rate of £10/hr doesn’t even come close to breaking even with the PAYE rate, £1.50 of that will be eaten up compensating you for holiday pay and workplace pension you don’t get alone and your accountant could cost anywhere from 40p to over a quid an hour depending on how many hours you do.
I would prefer to be paye but this isn’t an option I eventually want to secure full time work through the agency.
But there is a lot of tax you can save running through a LTD company over Paye so it seems… I would be paying myself a basic wage then taking the rest out As dividends which is 7.5% after 5000 pound.
If i am wrong someone fill me in…