Advice please Regarding PAYE, CIS etc

[Loki]

Hi everyone,

I've been offered temporary work through Girling Jones Recruitment Agency at Ikea site in Exeter as an improver. They were advertising it at £10 per hour.
So decided to go for it as it would be good experience etc.
Had an email from them stating "£7.94 per hour (£10.00 per hour including holiday)" so I gave them a call to enquire, they mentioned as its PAYE they do this to cover their stuff? They then mentioned CIS, limited company, umbrella company etc as options but got me really confused?
Whats the best way to get paid?
Thought PAYE would be simple £10ph x 38 - tax & NI etc.

I do have a UTR & remember something about CIS but am nit limited.
It seems they are trying to charge me to cover holiday pay?

Just had this email

"I can confirm that your rate of pay will be £9.50 inclusive. The base rate listed will be £8.48"

Any advice would be gratefully received

Thanks

Michael

 

[telectrix]

tell the parasites to get f*cked. they're taking the pi$$.

 

[Loki]

tell the parasites to get f*cked. they're taking the pi$$.

Thanks for confirming what I thought.
At £2 less per hour on a 38 hour week thats £76 out off pocket I don't think so.
So they make money from the contract with ikea & charge the electricians also ouch.
I'll send them an email declining the job.
Shame really as the experience would of been good & was told to start tomorrow morning.

 

[Leesparkykent]

Thanks for confirming what I thought.
At £2 less per hour on a 38 hour week thats £76 out off pocket I don't think so.
So they make money from the contract with ikea & charge the electricians also ouch.
I'll send them an email declining the job.
Shame really as the experience would of been good & was told to start tomorrow morning.

Most agencies are the same as they do it to get around ir35 rules. The most economic way is for you to open a ltd company and get paid through that....you will be able to keep all your earnings then. If you are looking at doing agency work then it would be best to go ltd and get a UTR number for the Ltd company.

 

[Loki]

Thanks Lee for that info.
I have declined the job now.

Is it easy to change from sole trader to ltd? Looks like doing it that way will be the way forward.

Michael

 

[Leesparkykent]

Thanks Lee for that info.
I have declined the job now.

Is it easy to change from sole trader to ltd? Looks like doing it that way will be the way forward.

Michael

Not that difficult mate. Do you have an accountant? If so you accountant will be able to do the company formation and advise you on the most tax efficient way to take money out of the company. Little more involved on the accountancy side of things so your accountants cost will probably be around £200-£250 a year more going from sole trader to ltd.