New to Contract Work

seaweed5254

Hi, can anybody please explain to me how the deductions are calculated if one is paid on an hourly basis ? I was made redundant and have never done any contract work before. I will be starting on a 3-month (minimum) contract. I was surprised that the agency asked me how i wanted to be paid, because i only know PAYE. Then he suggested (even thought that he was pushing me to use) some companies (limited?) but then i still decided to stick with PAYE to make things simpler. What difference would that make? I assume that the company will be working out the deductions for me, but i suspect it is the agency doing it because when i asked for my contract that i need to sign, he said that he is still calculating the tax, holiday pay, etc. does this mean that it is the agency who is paying me ? What are the things that i need to look out for ? is that straightforward calculation ?

Thank you. I will be starting tomorrow but i haven't signed the contract yet. Hopefully that would be okay.

olly300

Check your PM's

seaweed5254

thanks ! would it benefit if i do contract instead of using PAYE.

seaweed5254

any comments please ?