Ir35calc.co.uk: fair enough?

[Francko]

What do you reckon? Is it a fair calculation?

http://calculator.contractoruk.com/

According to this an 80k permanent position is paired with a 60 quid an hour contract within IR35.

I tend to agree, would you?

[BlasterBates]

...this sounds like you're trying to come terms with a perm salary.



Well lets calculate.

Well I get 200 days on £60 is around £96K gross. So assuming the 10% employers contribution means 90K (cost to the mployer) = £60.

However.....

I think you'll find most contractors who've been doing it for over 5 years average quite a bit more than 200 days a year, including "downtime".

...and who the hell pays IR35...

The reality is if you're on 60 an hour you'll be netting around £75,000
a year NETTING . That is contracting reality.

I'm on a paltry rate and net comparably.

[swamp]

I calculate most permies work around 225 days a year, including sick days and holidays. So 80K salary would be comparable to £44 per hour.

[Francko]

I calculate most permies work around 225 days a year, including sick days and holidays. So 80K salary would be comparable to £44 per hour.

How can you all be sure you are never going to pay IR35? Isn't that a bit too naive or optimistic?

[BlasterBates]

You can actually get insurance against IR35, so yes you can gurantee that as you have insurance you don't pay it. The insurers then pay any IR35 demanded by the IR in the unlikely event that they win a court case. The insurance is fairly cheap.

[hyperD]

How can you all be sure you are never going to pay IR35?

By not sending your contracts in for review to the IR.

[Francko]

By not sending your contracts in for review to the IR.

Ok then you are naive.