Self employed Rate - £12 per hour PAYE

[fucketyfuckwit]

If a role is advertised as £12 per hour PAYE, how much would you expect the pay to be on a self employed basis?

Any idease please?

Do you mean how much would your take home pay be after tax? For that we'd need to know how many hours you'd be working to work out roughly how much tax you'd need to pay.

The average on cost for a staff member is somewhere between 20-30% if that's what you mean.

I am self employed and work with just short of 25% costs: software, transcription service, travel etc.

And I aim to pay myself £20/HR after those on costs.

So if you take 25% as a ball park figure the that would mean £16/hr

Yes, I am going to offer someone a job but they would like to do it on a self employed basis rather than PAYE. It fits our business quite well but I'm not sure what to offer money wise that's all.

Yes it's about 20% more because when you pay for holiday leave and pensions and employers NI it comes to roughly 20%

@fucketyfuckwit

Yes, I am going to offer someone a job but they would like to do it on a self employed basis rather than PAYE. It fits our business quite well but I'm not sure what to offer money wise that's all.

IR35

You need to read about this

A role is either self employed or not- by the nature of the role- not by the choice of the person

Have you done the HMRC check as a company?
www.gov.uk/guidance/check-employment-status-for-tax

TheHoptimist is right, it's the role and not the person that dictates self employment. If you pay gross and it turns out the role is employed you'll be liable for both employer plus employee national insurance, plus interest and maybe penalties.

If they are doing it on a self-employed basis it needs to be ok for them to turn down work whenever they fancy (no limit on annual leave), no problem with them taking on other work even from your competitors, and absolutely fine for them to subcontract or employ someone else to do the work instead of them doing it if they so choose.

HMRC take a dim view of employers sidestepping obligations by doing this, and the putative employee is probably wanting to do it in order to avoid their own obligations e.g. student loan repayments or child support, or in order to fiddle their own taxes. Generally it is a bad idea.

I've looked into that information thank you. They run their own business which is similar to mine. It's a bit of a niche business and it's rare to find someone who is qualified.

We are going to mutually agree just 5/6 days per month for them to come and take some of my work.