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IR35
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TRBlacklock
Posts: 1 Newbie
I have been offered a new job through an agency which states the pay is PAYE within IR35, and given me the hourly rate.
What does IR35 mean and how does it affect my take home pay? Or do I just work out the usual PAYE deductions etc to calculate my take home?
Thanks
What does IR35 mean and how does it affect my take home pay? Or do I just work out the usual PAYE deductions etc to calculate my take home?
Thanks
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Comments
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TRBlacklock said:I have been offered a new job through an agency which states the pay is PAYE within IR35, and given me the hourly rate.
What does IR35 mean and how does it affect my take home pay? Or do I just work out the usual PAYE deductions etc to calculate my take home?
Thanks
The Agency should be able to clarify exactly how the role will be structured as the phrase "PAYE within IR35" is possibly confusing two things. I assume this is a contract role and you will not be staff on a regular employment contract at the end Client. If that is correct, then there are two main ways that you can be paid from an IR35 contract:- You work as an employee of the Agency so go on their PAYE payroll
- You work through an Umbrella Company, where you go on their payroll as an employee
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Just be aware that if you are quoted a hourly/daily rate and have to go via an umbrella that the rate will cover employee and employer taxes and levies... umbrella companies normally have a calculator on their site where you can plug your numbers in and they'll give an illustration of the monies but unfortunately some dont use the calculators and dont realise they have to pay employers NI, apprentice levy etc and so get disappointed with the take home pay.
No idea what you do or what your pay but after all deductions they cannot take you below NMW... some have historically not factored in all costs and so did0
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