Alex321
Guru
- Location
- South Wales
A person getting a salary doesn't pay for the upkeep of their vehicle and for fuel if used for work (they do for commuting, but that is very different to a job which requires regular site visits to different sites). They also don't pay the employers NI contributions or pension costs.So how much in your opiniin is he being paid per hour???
And before you start taking out tax, Ni, pension, fuel etc etc…….everyone getting paid a salary pays those things out if their wages, irrespextive of what their hourly rate is
so if my salary is £25hr…….thats my gross pay per hour
this guy charged 180 for 4hrs work……so his gross pay is £45hr
A sole trader has quite considerable costs additional to those a salaried employee would normally have.
I speak from experience here, having spent 10 years working as a freelancer (in IT). I didn't need much of the equipment a gardener would, though I did need reasonable computer equipment. One year, I claimed tax relief for 12,000 miles of business travel - which saves you about 20% of the cost of the diesel/petrol you are buying out of that income. If I had been a salaried employee working for one of the big consultancies, I might well have done similar mileage, but it would all have been paid for by my employer.
[EDIT]
And most employers will also pay you for the time spent travelling between jobs, while a sole trader only gets paid for the actual time on site.
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Overall, the proportion of what I was paid as gross fees that ended up in my personal bank account was a significantly lower percentage than would have been the case if I had been paid the same gross amount as salary.
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