UK average tax rate for contractor UK average tax rate for contractor
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  1. #1

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    Default UK average tax rate for contractor

    What's the average tax rate in the UK for a contractor, if you say earn 100K pa before tax and do the limited company stuff...?

    Obviously each persons will be different but i'm just after a ball park figure for what I could expect if I started contracting in London again.

    Are we talking 30% effective rate over the year, if you stay within the law?

  2. #2

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    Simple answer is to use a calculator to work out likely scenarios.

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  3. #3

    Contractor Among Contractors

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    The tax rate for contractors is whatever the government deem to be 'fair'. If its any different they will change the law retrospectively to make sure you pay your 'fair' share!
    Politicians are wonderfull people, as long as they stay away from things they don't understand, like working for a living!

  4. #4

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    Quote Originally Posted by aussielong View Post
    What's the average tax rate in the UK for a contractor, if you say earn 100K pa before tax and do the limited company stuff...?

    Obviously each persons will be different but i'm just after a ball park figure for what I could expect if I started contracting in London again.

    Are we talking 30% effective rate over the year, if you stay within the law?
    £100 000
    Less allowable expenses £2500
    = £97500
    Less Employers National Insurance. £8000
    Less Employees National Insurance. £10000
    Less Income Tax 35000
    Less business rates £22000
    Less council tax £3200

    £19,300
    Brexiteers remind me of religious fanatics, only faith, no facts.

  5. #5

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    I'm sure I've seen umbrella schemes with dispensations from the Inland Revenue to let you off some of the tax you might owe and allow you to keep 80% plus for yourself.
    Guy Fawkes - "The last man to enter Parliament with honourable intentions."

  6. #6

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    Quote Originally Posted by Alf W View Post
    I'm sure I've seen umbrella schemes with dispensations from the Inland Revenue to let you off some of the tax you might owe and allow you to keep 80% plus for yourself.
    Yes, and those ones in the IOM that let you keep 96%
    Brexiteers remind me of religious fanatics, only faith, no facts.

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