Private contract of 425 vs public sector contract (assuming inside IR35) 550 Private contract of 425 vs public sector contract (assuming inside IR35) 550
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  1. #1

    Nervous Newbie


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

    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

  2. #2

    Some things in Moderation

    cojak's Avatar
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    Quote 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
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

  3. #3

    Should post faster


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    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.

  4. #4

    My post count is Majestic

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    If you can't work it out for yourself then take the Public Sector one. HTH.
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  5. #5

    Faqqed Off

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    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.
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  6. #6

    Nervous Newbie


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

  7. #7

    Should post faster


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    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.

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