self employed at £15per hr or contracted at rate £12 per hr

julie2105

i dont' claim to know alot on the subject, however i used to work for an agency employing contract staff, these people earned £450-£1000 being 'limited' alot would have their own company but some would go through 'umbrella' companies, meaning that they did all the legwork, so it was like you got holiday pay and your accounts done but you also go a higher rate, of yourse not as high as the ltd option, say £13.50 versus £15 but it was still more than you would get employed. Look at umbrella companies for your trade...it might be an option and talk to a few, parasol, umbrella, and orangegenie were the ones i remember but they might be IT specific

where2start

thanks Julie2105, will do some research on that - that sounds good as well !

2sides2everystory

About 10 years or more ago I was told in an Information Technology type arena (appreciate the OP is in a different industry) that to work out a decent alternate daily rate to convert to short-term contract work, you take your current gross annual salary, double it and divide by 200

doodlesmum

Hammyman wrote: »

You'd sign away all rights as an employee and make it nigh on impossible to get a mortgage or bank loan for an extra £1.46 an hour?

Unbelievable.

Just wanted to add we have mortgage on our home,we did"nt have a problem but it will obviously depend on the lenders criteria.

Sambucus_Nigra

Hammyman wrote: »

You'd sign away all rights as an employee and make it nigh on impossible to get a mortgage or bank loan for an extra £1.46 an hour?

Unbelievable.

Did you misquote? The person said they would go with the employed option every time, not self-employed....

Hammyman

HappyMJ wrote: »

An employee also pays national insurance. A shareholder with dividends does not.

.

You pay employers NI. You pay statutory holiday pay.

Hammyman

julie2105 wrote: »

y but some would go through 'umbrella' companies, meaning that they did all the legwork, so it was like you got holiday pay and your accounts done but you also go a higher rate, of yourse not as high as the ltd option, say £13.50 versus £15 but it was still more than you would get employed. Look at umbrella companies for your trade...it might be an option and talk to a few, parasol, umbrella, and orangegenie were the ones i remember but they might be IT specific

An umbrella company specialising in HGV drivers states on their website that unless you can earn a minimum of £300 a week and in that week claimable expenses EXCEED ONE QUARTER OF WHAT YOU EARN in a week in claimable expenses, then the fees and employers NI the umbrella company deducts outweigh any savings you'd make on tax. Somehow I doubt that the OP is going to have £150 a week every week in claimable expenses. Even if you did it yourself as a Ltd Company, the same above applies - not worthwhile unless you have claimable expenses of AT LEAST 1/4 of what you earn.

The claim on tools will be negligible - hell, most of the tools my toolbox from when I was a mechanic are now 25 years old - when you do it for a living, you don't buy tools that last 5 minutes and if they do, you've bought ones with lifetime guarantees that cost nothing to replace.

where2start

Hammyman wrote: »

An umbrella company specialising in HGV drivers states on their website that unless you can earn a minimum of £300 a week and in that week claimable expenses EXCEED ONE QUARTER OF WHAT YOU EARN in a week in claimable expenses, then the fees and employers NI the umbrella company deducts outweigh any savings you'd make on tax. Somehow I doubt that the OP is going to have £150 a week every week in claimable expenses. Even if you did it yourself as a Ltd Company, the same above applies - not worthwhile unless you have claimable expenses of AT LEAST 1/4 of what you earn.

The claim on tools will be negligible - hell, most of the tools my toolbox from when I was a mechanic are now 25 years old - when you do it for a living, you don't buy tools that last 5 minutes and if they do, you've bought ones with lifetime guarantees that cost nothing to replace.

thanks - taken note of the information you given !

where2start

doodlesmum wrote: »

Just wanted to add we have mortgage on our home,we did"nt have a problem but it will obviously depend on the lenders criteria.

we already have a mortgage and was taken out 5 years ago ..tks

HappyMJ

Hammyman wrote: »

You pay employers NI. You pay statutory holiday pay.

I've never paid employers NI on dividends only on salary and that is less than £1 per week. I took holiday pay into account earlier.