Hi,
I have been offered a contract role in my current job but I cannot quite make out whether it is worth the hassle.
Currently I am earning around 45K on a temporary contract with the same company (through a umbrella company).
Due to increased responsibility and work, the company has offered direct contracting (from company's point of view they would be paying similar or less) as form of "pay increase".
They have offered 350 daily rate. And I am quite confused on how to calculate earnings through contracting. It seems the general idea is to have lowest possible wage and pay the remainder as dividends . But as I am married (wife doesnt work) and rent, there is fair bit of expenditure every month which may mean I would not be so tax efficient?
Also, would I be falling under IR35? There is a colleague who have been offered the same conditions and his view is that we wont be as we were on temp contract before...
Kind regards,
Jay
I have been offered a contract role in my current job but I cannot quite make out whether it is worth the hassle.
Currently I am earning around 45K on a temporary contract with the same company (through a umbrella company).
Due to increased responsibility and work, the company has offered direct contracting (from company's point of view they would be paying similar or less) as form of "pay increase".
They have offered 350 daily rate. And I am quite confused on how to calculate earnings through contracting. It seems the general idea is to have lowest possible wage and pay the remainder as dividends . But as I am married (wife doesnt work) and rent, there is fair bit of expenditure every month which may mean I would not be so tax efficient?
Also, would I be falling under IR35? There is a colleague who have been offered the same conditions and his view is that we wont be as we were on temp contract before...
Kind regards,
Jay
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