Will it be END of contracting after IR35 to private sector ??

[cojak]

Having just watched a webinar on this, one thing I hadn't really considered before (sorry if everyone else had and I'm slow on the uptake) is that the majority of this impact may be at the lower end of the contracting world (where most here wouldn't even call them contractors). By this I mean those around minimum wage, where they are arguably being exploited by the end client.

I’m afraid that we already have...

Forced into Contracting? Read this

I was trying to decide how to show an example of a pay packet that you may be considering.

Since all types of people are moving into contracting, I decided to go for the lowest - the Living Wage.

The Living Wage as of 23/08/18 is £7.83 per hour.

For an 8 hour day this comes to £62.64 per day.

However, you have tax, Employee's and Employer's NI, The Umbrella's commission and a few other things to pay out, so we have to see what you will need in order to get to that figure in your bank account.

But there are 'nice' round figures in the calcs, so I moved it up by less than a tenner and we are looking at £71.65 pd.

To get £71.65 in your bank account you will need to charge the client £100 per day (£500 pounds per week).

Or £358.26 per week (£71.65 x 5) in your bank account.

Use £500 pw in the calculator above to get the breakdown of costs.

But remember one thing. That £100 per day will not cover the time you go on holiday or fall sick. You will need to put some of your day rate to one side to cover those things (we call those savings our warchest).

If you manage your finances carefully and put some money to one side you will be able to make this work, but you can see that this would be difficult to do on £100pd.