IR35 helpful bullet points

**GhostofTarbera** · 30 January 2020, 11:02

If PAYE or umbrella on £400 a day plus then

Personal Allowances
The Personal Allowance is the amount of income a person can get before they pay tax.

Personal Allowance£12,500
Income limit for Personal Allowance£100,000
The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.

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**Lance** · 30 January 2020, 13:55

If you have a contract with a rate of £100k p.a. and only work 6 months, you will pay the tax of a person on £100k at point of pay, but you can claim back the overpaid tax at self assesment.

Put it another way. PAYE assumes you're going to be there all year even if it's just a 3 month contract.

If you move client part way through the year, your P45 is really important so the next employer gets the tax right.

Not sure this thread is anything more than a guide to how being a permie works though......

**Scoooby** · 2 February 2020, 16:41

Originally posted by GhostofTarbera View Post

Let’s list some helpful bullet points for all the people now visiting CUK in IR35 after a few weeks some kind soul (me if no one else volunteers) can put it into a new post

I will start

Child benefits

Now you are via PAYE/umbrella and earn over £50K (£200 a day ish gross) you will need to pay some or all of your family allowance (but still claim as it gives you other benefits, national insurance credits, NI number for your kid)

If you earn over £100K gross £400 a day ish you will lose your 1140 free childcare hours that’s about £9K extra you will need to find from your net pay (so might be an idea to keep under that if close to the line

Go go go

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The 1140 free hours from August next year is free for all 3 & 4 year olds in Scotland regardless of income, including if you earn over £100k.

However if you earn over £100k you are ineligible for the Tax Free childcare scheme. Although not sure if there is a legitimate way round this if you think your annual earnings might end up being less than £100k if you only end up getting a contract for less than 12 months. But you won't necessarily know this at the time of applying and therefore might miss out in this scenario if you can't claim back the tax retrospectively at the end of the tax year.

**GigiBronz** · 2 February 2020, 20:02

Originally posted by Lance View Post

you will pay the tax of a person on £100k at point of pay, but you can claim back the overpaid tax at self assesment.

Both EE NI & ER NI?

IR35 helpful bullet points