April off payroll

[GigiBronz]

How 4.5k is calculated ? I thought through umbrella co you get 58.58%.

253 working ;25 days off;228 days worked;102600 gross ;88441.2 after employer NICs 13.8% ;77828.256 after empplyee NICs 12% ;12500 tax free ;52262.6048 left ;40000=50k at basic rate20% ;1357.56288 after higher rate40% ;Total: 53857.56 ; about 4.5k pcm.

for umbrella you might have to factor another 25-30£ pw in administration fees, apprenticeships levy, and holidays taken out than repaid when taken(not all accessible upfront.)

I'll mention one scenario only, you have a 1y contact, don't want to pay 30-40% premium for airbnb so take a 6m-12m apartment lease. Get booted 2m in the contract because of budget or manager doesn't like the colour of your shoes. Try to factor this one into the costs.

I strongly recommend the £550-1000/day crowd look abroad until the dust settles.

Take time off, look outside UK. It is not about the money and that is a lesson you learn chasing the first few roles and end up in the wrong place.
Life is not only about work anyway.

[m0n1k3r]

Take time off, look outside UK. It is not about the money and that is a lesson you learn chasing the first few roles and end up in the wrong place.
Life is not only about work anyway.

Many other countries have IR35-like legislation, although implemented in a far better way than in the UK.

[ukltdcon]

I have a meeting Monday about my clients plans for contractors in April and would welcome some input from other CUK contractors

1. If Paye is deducted from my invoice what do other forum members feel should be the % uplift in day rate to compensate?

2. Is there any insurance out there to protect my client and I if we jointly agree to stay outside IR35. My contract and working practices are outside But e.g. If hmrc arbitraly decide the contract is inside IR35. I already have IPSE but this would not cover any liability for the client. Is there any insurance I could suggest to my client around this please?

3 in the unlikely event of going perm I reckon I'd be looking at 30% on top of my current day rate - does that sound OK? I don't really see perm as an option though having been a professional contractor for 13 years now

Thanks for any input

There is insurance my current gig who have around 200 contractors has partnered with a firm to offer just this for outside IR35, contractor will pay around £150 to towards this cost, personally think this is the way forward for contracting, just like our own IR35 insurance most contractors have had for years.

[rogerfederer]

Many other countries have IR35-like legislation, although implemented in a far better way than in the UK.

Let's face it, the reason many of us, our parents or ancestors came to the UK was for better quality and more diverse working options.

If we're stuck with no expenses and paying much higher taxes without the equivalent quality of living (ie: public services, standard of living) then it still makes sense for those able to move to look at Norway, Sweden, Denmark, Netherlands and further afield.

For example in another thread over the weekend someone asked queries about Sweden: yes, higher tax - although not as high as Norway - but higher quality of living than the UK and, depending on what you value doing with your spare time, accessible outdoors and diverse hobby options. If your sole focus is beer then yes, Sweden is more expensive for that, but I'd also suggest you're a bit of a dullard if that's your sole hobby ;-)

[Andy2]

Many other countries have IR35-like legislation, although implemented in a far better way than in the UK.

A mate is working through a limited company in ireland. Apparently ir35 like legislation is not there.

[eek]

A mate is working through a limited company in ireland. Apparently ir35 like legislation is not there.

Really? He is working via a UK limited company in Ireland and the Irish taxman hasn't caught him yet. Give them time.

[Andy2]

Really? He is working via a UK limited company in Ireland and the Irish taxman hasn't caught him yet. Give them time.

Not sure if he has UK company or Irish but he is confident he is not affected by this IR35 changes.

[WTFH]

Not sure if he has UK company or Irish but he is confident he is not affected by this IR35 changes.

If he has an Irish Company as is working in Ireland, then he's not under UK jurisdiction when it comes to tax laws.

[silverlight1]

I have a meeting Monday about my clients plans for contractors in April and would welcome some input from other CUK contractors

1. If Paye is deducted from my invoice what do other forum members feel should be the % uplift in day rate to compensate?

2. Is there any insurance out there to protect my client and I if we jointly agree to stay outside IR35. My contract and working practices are outside But e.g. If hmrc arbitraly decide the contract is inside IR35. I already have IPSE but this would not cover any liability for the client. Is there any insurance I could suggest to my client around this please?

3 in the unlikely event of going perm I reckon I'd be looking at 30% on top of my current day rate - does that sound OK? I don't really see perm as an option though having been a professional contractor for 13 years now

Thanks for any input

An update following meetings with my client.

I provided them with evidence (QDOS) that our contract was outside IR35 and they have accepted this.

I told them that I would have to leave if they made any other determinations other than outside IR35 and we looked on the off payroll April rules as being a shared problem.

They have stated they want to retain my services and see me as outside IR35 but may want to change some engagement practices to protect themselves.

They do not want me to use their own equipment going forward.

They want me to base myself out of my own office (which I mostly do anyway).

Glad I have an enlightened client...

[ladymuck]

An update following meetings with my client.

I provided them with evidence (QDOS) that our contract was outside IR35 and they have accepted this.

I told them that I would have to leave if they made any other determinations other than outside IR35 and we looked on the off payroll April rules as being a shared problem.

They have stated they want to retain my services and see me as outside IR35 but may want to change some engagement practices to protect themselves.

They do not want me to use their own equipment going forward.

They want me to base myself out of my own office (which I mostly do anyway).

Glad I have an enlightened client...

Great news, now get it all in writing!