PDA

View Full Version : take home 550 p day - but ir35 - help



Lewismorgan
20th July 2017, 09:04
Im currently on £500 p day under my ltd company.

Ive been offered work with NRail on £550 per day but IR35 stands

how much will umberella take ? and do they take my tax also at source?

how much will i take home per day after umberella and after tax? with IR35 is it not a good thing to take on the position now? im worried..

thanks in advance

and if you know a cheap umberella company that would be great

psychocandy
20th July 2017, 10:38
Im currently on £500 p day under my ltd company.

Ive been offered work with NRail on £550 per day but IR35 stands

how much will umberella take ? and do they take my tax also at source?

how much will i take home per day after umberella and after tax? with IR35 is it not a good thing to take on the position now? im worried..

thanks in advance

and if you know a cheap umberella company that would be great


Ask umbrella for a quote. They charge betqeen £15-£30 per week. BUT you're going to be paying shedloads of tax. £550 inside is probably worse than £500 outside.

northernladuk
20th July 2017, 10:51
Check Contractor Umbrellas site out. They have a calculator on it so you can play around with that but it will depend on how much you've paid yourself already and stuff so only an indication.

Don't look for a cheap umbrella, look for a good one. If you focus on cheap you might be tempted by the 85%+ crowd which is very very bad.

There are ways to mitigate the tax by paying in to a pension as well. Again Contractor Umbrella have a good one so speak to them about it. Are you sure your agent doesn't have a PSL though?

Try having a look at the search method detailed in the FAQ. This type of post is popping up more and more and you will have a lot more questions which have already been asked.

HTH

eek
20th July 2017, 10:59
Only thing to add to NLUK comment is that inside IR35 means no expenses are tax deductible - and that includes the journey to and from the client...

Lewismorgan
20th July 2017, 11:00
thanks guys, i guess ill not accept the opportunity may as well go full time and get benmifits if this is the case... why did the gov do this? must be a nightmare recruiting good staff now for the gov. ?

northernladuk
20th July 2017, 11:10
thanks guys, i guess ill not accept the opportunity may as well go full time and get benmifits if this is the case... why did the gov do this? must be a nightmare recruiting good staff now for the gov. ?

Read the stickies in the thread and the news articles. It's all in there. We've been discussing this for nearly a year now. Get yourself on the IPSE, contractorUK, contractor weekly and linkedin news distribution lists. They've all been sending articles out over the last 12 months plus so this should not be news to you at this stage.

When you turn it down make it very clear it's becasue of the inside determination. The more the clients struggle with it the better the chance they'll do more to work on making the roles outside where possible.

fidot
20th July 2017, 17:11
When you turn it down make it very clear it's becasue of the inside determination. The more the clients struggle with it the better the chance they'll do more to work on making the roles outside where possible.

or do the calculations and try to negotiate an increase to cover the difference, again making it clear that it is because of the inside determination

Brummie
20th July 2017, 17:20
Im currently on £500 p day under my ltd company.

Ive been offered work with NRail on £550 per day but IR35 stands

how much will umberella take ? and do they take my tax also at source?

how much will i take home per day after umberella and after tax? with IR35 is it not a good thing to take on the position now? im worried..

thanks in advance

and if you know a cheap umberella company that would be great

Not worth it. I wouldn't do the mistake of accepting it. Your take home after taxes (and paying for expenses from it - you cannot claim expenses) would be worth around £350 approx.

Elliegirl
20th July 2017, 19:23
Check Contractor Umbrellas site out. They have a calculator on it so you can play around with that but it will depend on how much you've paid yourself already and stuff so only an indication.

Don't look for a cheap umbrella, look for a good one. If you focus on cheap you might be tempted by the 85%+ crowd which is very very bad.




Or even have to cope with a company that closes down and runs off with your money.

SteelyDan
20th July 2017, 20:15
Im currently on £500 p day under my ltd company...

why did the gov do this?

with IR35 is it not a good thing to take on the position now?

What I don't get is how you're running a Ltd Co and are clearly oblivious to all of this? As has been pointed out, this has been around for quite a while now. Jeezus...

Lewismorgan
21st July 2017, 10:37
thanks, i am turning id down it spits out £1400 - 1500 per week from £2750.

thanks for all your help.

chopper
14th August 2017, 21:35
thanks, i am turning id down it spits out £1400 - 1500 per week from £2750.

No, on £500 a day, your take home isn't £2750. If you're taking that out of your company, then a hope you have a lot of spare lube. You are paying your VAT and Corp Tax, right?

eek
14th August 2017, 21:50
No, on £500 a day, your take home isn't £2750. If you're taking that out of your company, then a hope you have a lot of spare lube. You are paying your VAT and Corp Tax, right?

Read the headline its £550 a day which for 5 days work is £2750 before tax and between £1400-1500 under IR35 before expenses.

Currently he is on £500 a day via a limited company so expenses are deducted first than 19% corporation tax afterwards..

psychocandy
15th August 2017, 09:54
Read the headline its £550 a day which for 5 days work is £2750 before tax and between £1400-1500 under IR35 before expenses.

Currently he is on £500 a day via a limited company so expenses are deducted first than 19% corporation tax afterwards..

Sounds about right. Like I said just get a quote from an umbrella - they're all pretty much the same.

northernladuk
15th August 2017, 10:17
Sounds about right. Like I said just get a quote from an umbrella - they're all pretty much the same.

But in another thread you've just said they aren't as some offer crap pensions and others offer good ones? :confused:

psychocandy
15th August 2017, 10:33
But in another thread you've just said they aren't as some offer crap pensions and others offer good ones? :confused:

Yes but if we're talking purely some idea of take home which the OP is after.