contracts inside ir35

[Andy2]

Just in the market for new contracts.
Should I refuse the contacts which are ir35 caught ?

with a contract outside ir35 I get about 75% net for 80k annual income,
how much you get if a contract is inside ir35 ?

[malvolio]

About 20% less...

[Andy2]

About 20% less...

55% net ?

One can make the same in permi job
why do people take these then ?

[Sockpuppet]

55% net ?

One can make the same in permi job
why do people take these then ?

They have to catch you first.

[Bluebird]

55% net ?

One can make the same in permi job
why do people take these then ?

Because some companies don't want full time employees

[malvolio]

Inside IR35 all your gross income for the contract less 5% must be paid as earned income, so full PAYE and both elployers and emploees NICs at the prevailing rates. Outside IR35, assuming you can justify it, you can set your own salary and then distribute any annual profits as dividends which will already have had some tax paid via CT and are not liable to NICs. The difference between the two, on average, is about 20% of your net take home, all else being equal. Which is quite a lot of income wasted if you actually have a defensible outside-IR35 contract.

[Andy2]

cheers malvolio, that clears it