I have a potential new job. The boss has a budget of £30ph to pay for my services. He has to employ me as a locum/temp/contractor, not permanent, and probably on a 6 month rolling basis, and I'm trying to work out the most tax efficient means.
A limited company seems the best route.
I have a million questions and I'm prepared for the flames - I've tried to read about this and just end up more confused.
My calculation for what I can get paid is:
Figure paid by employer
minus VAT (which I might be able to get flat rated at 12%)
minus my company's Employer NI (12.8% of whatever salary I elect to give myself)
minus corporation tax (which looks like 20%) on remainder minus salary and deductible expenses.
minus dividend tax on any dividends I pay myself over the high-tax-rate threshold (at 40%-20%=20%)
minus my employee's NI (at 11%) on my salary
minus income tax on my salary minus my employee NI
On £30ph, with an arbitrary salary of £5ph I make that:
30-3.6-0.64-4.152-0.55-0.89= £20.168 which is 67.23%
Does that look about right, and is this all dependent on this nebulous "IR 35" I seem to keep coming across?
Then it is for my ltd company to invoice my boss each month.
What fundamental flaw am I missing?
Thanks for any help anyone can offer.
A limited company seems the best route.
I have a million questions and I'm prepared for the flames - I've tried to read about this and just end up more confused.
My calculation for what I can get paid is:
Figure paid by employer
minus VAT (which I might be able to get flat rated at 12%)
minus my company's Employer NI (12.8% of whatever salary I elect to give myself)
minus corporation tax (which looks like 20%) on remainder minus salary and deductible expenses.
minus dividend tax on any dividends I pay myself over the high-tax-rate threshold (at 40%-20%=20%)
minus my employee's NI (at 11%) on my salary
minus income tax on my salary minus my employee NI
On £30ph, with an arbitrary salary of £5ph I make that:
30-3.6-0.64-4.152-0.55-0.89= £20.168 which is 67.23%
Does that look about right, and is this all dependent on this nebulous "IR 35" I seem to keep coming across?
Then it is for my ltd company to invoice my boss each month.
What fundamental flaw am I missing?
Thanks for any help anyone can offer.
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