Self Employed rate to PAYE rate?..

hanms88

Hi all,

First time here, so not sure if this is the right place to post this thread..
Essentially, my boss is trying to get me to convert from a no sick pay/no holiday pay self-employed wage to a PAYE wage, and gave me a gross rate of what they will be offering... Is there a way I can calculate roughly my net pay for both, and compare the two? He says their accountant converted the self-employed to the PAYE, but not sure if it was a straight conversion or if there was a slight cut...

Thanks in advance!!

InsideInsurance

I use the generous method of taking the annual gross salary and dividing by 100 to get to the day rate (so if you earn £20,000 you should get £200 a day). Others are slightly tighter and say divide by 1,000 to get an hourly rate (ie £20,000 becomes £20/hr).

Being a contractor equates to more money if things go well (ie your not sick, not laid off etc) and you dont intend to take masses of holiday. Obviously you want to be better paid to cover the gamble over being sick etc

Notmyrealname

hanms88 wrote: »

Hi all,

First time here, so not sure if this is the right place to post this thread..
Essentially, my boss is trying to get me to convert from a no sick pay/no holiday pay self-employed wage to a PAYE wage, and gave me a gross rate of what they will be offering... Is there a way I can calculate roughly my net pay for both, and compare the two? He says their accountant converted the self-employed to the PAYE, but not sure if it was a straight conversion or if there was a slight cut...

Thanks in advance!!

Basically, holiday pay is about 12.5% of your gross pay. So divide your self employed hourly rate by 112.5 and multiply the result by 100 and that'll give you the equivalent adjusted hourly rate assuming you also didn't get an additional amount to compensate for employers NI.

Its comforting to see companies realising they're breaking the law employing people like yourself working as you do self employed when you don't actually qualify as being.

hanms88

InsideInsurance wrote: »

I use the generous method of taking the annual gross salary and dividing by 100 to get to the day rate (so if you earn £20,000 you should get £200 a day). Others are slightly tighter and say divide by 1,000 to get an hourly rate (ie £20,000 becomes £20/hr).

Being a contractor equates to more money if things go well (ie your not sick, not laid off etc) and you dont intend to take masses of holiday. Obviously you want to be better paid to cover the gamble over being sick etc

Thanks for that, but it does seem VERY generous...

hanms88

Notmyrealname wrote: »

Basically, holiday pay is about 12.5% of your gross pay. So divide your self employed hourly rate by 112.5 and multiply the result by 100 and that'll give you the equivalent adjusted hourly rate assuming you also didn't get an additional amount to compensate for employers NI.

Its comforting to see companies realising they're breaking the law employing people like yourself working as you do self employed when you don't actually qualify as being.

Yup, this sounds more like it, and yes, it looks like I'm getting a pay cut, like everyone else

I know.. Probably why they decided to switch us all to PAYE... But we suffer as a result :mad:

Thanks though! ^^