Private contract of 425 vs public sector contract (assuming inside IR35) 550

**cojak** · 3 May 2017, 19:06

Originally posted by question34in View Post

Hi

I have two contracts in hand at the moment. One is paying me 425 in private sector assuming outside IR35.
Other one is public sector contract offering 550 a day (Assuming inside IR35). What path should i opt for?
Please advice. I am really confused at the moment.

cheers
Q

Only you can make that decision I'm afraid.

Take a look at this thread to help you decide http://forums.contractoruk.com/publi...bout-ir35.html

**Patrick@Intouch** · 4 May 2017, 07:58

The private sector contract would offer you more flexibility over your personal income (i.e. what you take in terms of salary and dividends) and the level of tax that is incurred (to a degree).

To assess this from a taxation point of view you would need to be able to discuss your personal situation with an accountant who should be able to run the figures through both scenarios for you and provide a robust comparison.

This is, of course only one element and you may also be considering location, seniority of engagement as well as various other factors.

**northernladuk** · 4 May 2017, 08:15

If you can't work it out for yourself then take the Public Sector one. HTH.

**TheFaQQer** · 4 May 2017, 08:34

Opt for the best one for you.

If you don't know which one that is, then it's the permie offer that you need to find quickly.

**NewDan** · 4 May 2017, 10:13

Why don't you just ask whether the Public Sector role is inside or outside, rather than assuming?

**b r** · 4 May 2017, 10:36

If you don't know which one that is, then it's the permie offer that you need to find quickly.

+1

And what are the expenses for both, as you need to work out the ACTUAL net figure, and then that will tell which is financially the best.

Private contract of 425 vs public sector contract (assuming inside IR35) 550