Re: "engage on a PAYE basis"
@Persona - don't get sucked into the soundbite BS from the taxman. The bit you're missing is that contractors pay *different* taxes. VAT at 16 or 20% of revenue. Corporation tax at 20% of profit. These are paid out of the ltd company. You need to leave some in the company for insurance, accountant, training, kit, sickness/absence/no work etc. Then of the money that you take out and pay yourself (and optionally, your spouse), there is a nominal amount of income tax and NI, plus tax on dividends. As an example, a contractor on £600 per day will probably pay in the region of £50k in taxes for the year. (circa £21k in VAT, £23k in corp, maybe £6k in personal taxes). PAYE raises that to £62k deductions.
If they go permie on £75k, the taxman gets £22k per year in total deductions.
Biting the hand that feeds IT
