Excel spreadsheet - compare in/out IR35 and PAYE

[booms]

Hi

I'm sure I saw a great spreadsheet someone had put together on here - with separate tabs comparing the tax treatment/efficiency of running a contractor job in/out of IR35 as compared to a standard PAYE taxed employee arrangement (and I think also as a sole trader?)

I've searched and searched - does anyone happen to know the sheet I mean?

[northernladuk]

Plenty of inside outside ir35 calculators. Why does you want sole trader and permie equivalents?

[booms]

Plenty of inside outside ir35 calculators. Why does you want sole trader and permie equivalents?

Hey - thanks for the reply.

I've seen the online calculators - I'm interested in something in a spreadsheet so I can see the formulae - play with the newer tax rates/days holiday etc. It's also useful for me to see how the dividends work as I'm new to this.

Trying to decide between contracting and permie roles so useful to see that comparison too.

It was a great spreadsheet that I found a few months ago - it did all that but I can't seem to find it again!

[LondonManc]

Hey - thanks for the reply.

I've seen the online calculators - I'm interested in something in a spreadsheet so I can see the formulae - play with the newer tax rates/days holiday etc. It's also useful for me to see how the dividends work as I'm new to this.

Trying to decide between contracting and permie roles so useful to see that comparison too.

It was a great spreadsheet that I found a few months ago - it did all that but I can't seem to find it again!

For me, this shouldn't primarily be about the money. Contracting is a different lifestyle (as is consulting).
Permie - reasonable job security, training, paid sick, holidays, mat/pat leave, etc., pension, bonus, redundancy, stability of location
Consulting - reasonable job security (albeit at the whim of business development team), better pay than permies, better expenses policy than contractors, considerable travel expected, training, permie benefits, could be anywhere the following day so not suitable to a social commitment, e.g. snooker team, regular hobby club, etc
Contracting - zero job security, great pay, project-based work, variety, high risk, i.e. no work/no pay for sickness, vacation, mat/pat leave, etc. expected experience in terms of both skillset and field.

I was a permie for over 12 years before I went contracting, simply because I wanted to guarantee that I had enough skills, experience and confidence behind me to be able to keep securing work. Since I took the plunge six years ago, I've had an extension at every site I've worked at.

[northernladuk]

You are going to have to do all this again come April16 when t&s and dividend tax rules kick in which are going to have a significant impact on contracting.

Deciding what to do based in spreadsheets is a very poor way to make this decision IMO.

[dmini]

I wouldn't mind a proper spreadsheet - I just fed into the online calculator here a day rate of 400 and expenses (Pension and T&S) of 24000 and allegedly I'm better off inside IR35 than out!!
Methinks the calculator is bust

[WordIsBond]

I can tell you how to get exactly what you want.

1. Google to find out rates and thresholds, and exactly how IR35 works.
2. Make your own spreadsheet.

Or alternatively, PM me and I'll have a spreadsheet made for you, for a fee. I'll have an apprentice do it to keep the cost down, because this really isn't that hard....

[booms]

Found it!

No idea why it was so hard to find.

It's at Paul Banks' website:

https://paulbanks.org/projects/ukpaye/

Seems to only go up to 14/15 so as others said, it'll all need updated, but it's a great start for me.

If anyone sees an error in it, it would be useful to know, but I'm going to start working through the formula and comparing to online calculators.

[northernladuk]

Haven't played with it enough to spot errors but it does fall very short as a comparison tool. As previously stated you can't just compare a full time job and contracting on rates alone. That would be a huge mistake. You will get all starry eyed at the amount of money that you will be making as a contractor and forget a whole host of things. For a start it asks for gross profit. How are you going to calculate that bearing in mind you should be thinking about working 10 months a year, no idea of expenses due to not knowing where your next gig will be or what you need to spend being a contractor i.e. accountancy, PI/PL and so on and so forth.

Yes it might do a pretty good job of giving you the figures but it falls very short in comparing other very important factors.

And it's all going to change in Apr with divi tax and no more T&S etc etc...

Fill your boots but I still say you are going about this all the wrong way. You'll go contracting because the numbers look bigger and find yourself in a situation you just didn't expect.

[Andrew@Wisteria]

Hey - thanks for the reply.

I've seen the online calculators - I'm interested in something in a spreadsheet so I can see the formulae - play with the newer tax rates/days holiday etc. It's also useful for me to see how the dividends work as I'm new to this.

Trying to decide between contracting and permie roles so useful to see that comparison too.

It was a great spreadsheet that I found a few months ago - it did all that but I can't seem to find it again!

The old spreadsheets will be somewhat useless as the dividends will completely change from April 16 (so formulas will be wrong)