I've read you can get a 'rough' comparison of perm to contract with Salary / 1000.
So if someone was earning about 50 k a year.
Their equivalent daily rate would work out at £400 a day (based on a 8 hour day).
When I compare the net incomes I get a very different result though.
Perm
Yearly Gross £50,000
Yearly Net £35,963
Pension £2,500
bonus £2,000
Healthcare £1,000
Net Year £41,463.36
Contracting:
Day £400.00
Days Per Year 220
Yearly Gross £88,000.00
Gross Month £7,333.33
Net Month £5,500 (based on 75% take home - working outside of IR35)
Net Year £66,000
So this 'rough' calculation looks miles out, with nearly a 25 k difference.
Am I missing something?
So if someone was earning about 50 k a year.
Their equivalent daily rate would work out at £400 a day (based on a 8 hour day).
When I compare the net incomes I get a very different result though.
Perm
Yearly Gross £50,000
Yearly Net £35,963
Pension £2,500
bonus £2,000
Healthcare £1,000
Net Year £41,463.36
Contracting:
Day £400.00
Days Per Year 220
Yearly Gross £88,000.00
Gross Month £7,333.33
Net Month £5,500 (based on 75% take home - working outside of IR35)
Net Year £66,000
So this 'rough' calculation looks miles out, with nearly a 25 k difference.
Am I missing something?
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