Hey all,
First post so apologies if this question has been asked time and time again..
My current situation is that I'm in a contract which expires in September, and I'm engaged as 'outside IR35' - it's with a private sector consultancy.
My day rate for that engagement is £450.
I'm likely to be offered an extension, but I've also been offered a contract in the public sector which is deemed as 'inside IR35' and I'm 'taxed at source' - the day rate for that engagement is £550.
I'm not quite sure how they stack up - I'm used to taking out up to £50,000 in salary and dividends from my limited company each tax year and letting the rest sit there (I dunno what for!) - and I've got a fair bit of cash built up in my business bank account, but for this example if I was taking it all out each year - how does it compare?
£450 p/day * 230 = £103,500
£550 p/day * 230 = £126,500
My expenses are pretty low - I've generally worked mostly at home so I don't take much in T&S expenses.
I've also got the added fun of paying 9% of any income above approx £19k for my student loan.
I've got no idea how the two stack up... can anyone help with what my take home per month would be if I was engaged inside IR35 on a public sector contract and also accounting for student loan?
Thanks...
First post so apologies if this question has been asked time and time again..
My current situation is that I'm in a contract which expires in September, and I'm engaged as 'outside IR35' - it's with a private sector consultancy.
My day rate for that engagement is £450.
I'm likely to be offered an extension, but I've also been offered a contract in the public sector which is deemed as 'inside IR35' and I'm 'taxed at source' - the day rate for that engagement is £550.
I'm not quite sure how they stack up - I'm used to taking out up to £50,000 in salary and dividends from my limited company each tax year and letting the rest sit there (I dunno what for!) - and I've got a fair bit of cash built up in my business bank account, but for this example if I was taking it all out each year - how does it compare?
£450 p/day * 230 = £103,500
£550 p/day * 230 = £126,500
My expenses are pretty low - I've generally worked mostly at home so I don't take much in T&S expenses.
I've also got the added fun of paying 9% of any income above approx £19k for my student loan.
I've got no idea how the two stack up... can anyone help with what my take home per month would be if I was engaged inside IR35 on a public sector contract and also accounting for student loan?
Thanks...
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