Tax question

[Blaine34]

Hi all!

I recently started contracting and have set myself up as a limited company.

I was just wondering whether anyone knows roughly how much tax I will have to pay if I earn 30k over the course of 6 months and then am planning to take a 6 month break from work) i.e. earn 30k in total over 12 months?

Thanks

Blaine.

[FSM with Cheddar]

What do you mean? African or European?

[snaw]

Hi all!

I recently started contracting and have set myself up as a limited company.

I was just wondering whether anyone knows roughly how much tax I will have to pay if I earn 30k over the course of 6 months and then am planning to take a 6 month break from work) i.e. earn 30k in total over 12 months?

Thanks

Blaine.

What's this limited company thing you speak of?

[expat]

Here's a starter, winging it as I type: more or less worst-case, take it from there.

Bill 30k. Assume 1k expenses for accountant etc, nothing else.

29k. Assume inside IR35, pay all as payroll to yourself (no other income). 29000 payroll, take off 12.8% Employer's NIC (12.8% of result after taking it off, IYSWIM): 25709.

Enter that into http://calculator.contractoruk.com/ in the "Permanent Employees" field. Result:

On a salary of £25,709, net income per month is £1,638

Then play around with the calculator.




Note (discussion welcomed on this): ISTM that if you are a Director of your Ltd Co, then you will pay NICs as if you worked for the whole year (albeit on the correct amount of income), whereas if you are only an employee then you will pay NICs on the income only in the months when salary is paid. So if there is some safe way of not being a director, it might pay.

[moorfield]

Blaine - try http://calculator.contractoruk.com/ instead.

[suityou01]

Hi all!

I recently started contracting and have set myself up as a limited company.

I was just wondering whether anyone knows roughly how much tax I will have to pay if I earn 30k over the course of 6 months and then am planning to take a 6 month break from work) i.e. earn 30k in total over 12 months?

Thanks

Blaine.

Step 1 get tulip hot accountant.
Step 2 get contract vetted for IR35 (Try joining the PCG and get a discounted review from Accountax)
Step 3 get agency to amend contract based on the review so it is outside IR35.
Step 4 Look up the word dividend on wikipedia.

HTH

[Pickle2]

6k

[FSM with Cheddar]

Step 1 get tulip hot accountant.
Step 2 get contract vetted for IR35 (Try joining the PCG and get a discounted review from Accountax)
Step 3 get agency to amend contract based on the review so it is outside IR35.
Step 4 Look up the word dividend on wikipedia.

HTH

You forgot the icky goo stage