Calculate take home pay for outside IR35 role + PAYE Calculate take home pay for outside IR35 role + PAYE
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    Default Calculate take home pay for outside IR35 role + PAYE

    Hi Guys,

    Just curious as I am finding it hard to make such a calculation.

    Does anybody know how to calculate true take home pay if a person had an outside IR35 role and a PAYE perm job?

    I've been at pains to figure it out, but I guess I don't understand how tax works.

    Thanks

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    Quote Originally Posted by password View Post
    Hi Guys,

    Just curious as I am finding it hard to make such a calculation.

    Does anybody know how to calculate true take home pay if a person had an outside IR35 role and a PAYE perm job?

    I've been at pains to figure it out, but I guess I don't understand how tax works.

    Thanks
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    Quote Originally Posted by password View Post
    Hi Guys,

    Just curious as I am finding it hard to make such a calculation.

    Does anybody know how to calculate true take home pay if a person had an outside IR35 role and a PAYE perm job?

    I've been at pains to figure it out, but I guess I don't understand how tax works.

    Thanks

    Your accountant should be able to help, but are you saying you have a permanent job and a contract and both are running at the same time?
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    The perm job pays your gross salary less all applicable taxes. The outside IR35 contract pays either 95% of your your gross less all employment taxes if you go through an umbrella (ignoring any pensions arrangements) or whatever you want to pay through your own company. Although then you have other taxes to worry about.

    So that's not a lot of help, but it is not a black and white question.
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    Just put your PAYE salary in the salary section of a calculator and the estimated annual profit (after CT) in the dividends section.
    See You Next Tuesday

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    Quote Originally Posted by password View Post
    Hi Guys,

    Just curious as I am finding it hard to make such a calculation.

    Does anybody know how to calculate true take home pay if a person had an outside IR35 role and a PAYE perm job?

    I've been at pains to figure it out, but I guess I don't understand how tax works.

    Thanks
    My accountant did this free for me

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    Live off the PAYE salary and build up reserves in YourCo

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    Quote Originally Posted by fidot View Post
    Live off the PAYE salary and build up reserves in YourCo
    this advice is not very good.
    No point leaving in the company unless you're already at the higher rate threshold. Take every penny out at 7.5% tax that you can.
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