Remember no expense deductions, if you're doing a like for like comparison.
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£750 a day inside
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Originally posted by vwdan View PostRemember no expense deductions, if you're doing a like for like comparison.
750 a day for 6 months = £99,000 gross
Through umbrella Contractor Take Home Pay & Expenses Calculator | Parasol thats
£7900 net per month x 6 = £47,400 net
According to this The Salary Calculator - Take-Home tax calculator
Usual PAYE perm job with salary of £99,000 for the year - would be take home of £66,000
If I cant reclaim that tax back with umbrella contract Im £20,000 worse off than being perm.
And what happens to my limited company? Stop taking monthly salary and leave it dormant for the foreseeable future?Comment
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The double posting gremlin is back!
You could get an income tax refund but you'll never get a NI refund.
You can choose to leave funds in your LtdCo and/or use them the fund your pension - check with your accountant the best way forward. If there's any business activity (such as pension contribs) then I don't think you can make it dormant.Comment
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Originally posted by ladymuck View PostYou can choose to leave funds in your LtdCo and/or use them the fund your pension - check with your accountant the best way forward. If there's any business activity (such as pension contribs) then I don't think you can make it dormant.Comment
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Originally posted by Paralytic View PostI think checking with your accountant is important. Would there be any issue in making Pension contributions (from retained funds in PSC) if you're an employee (either standard PAYE or Umbrella) at the time? Can you make those payments even if you're not actively working via the PSC? I guess you could argue you are actively out looking for business.
Its already a ballache of multiple months on bench between roles - staring at jobserve everyday
Now Im gonna have tax nightmares on top.
Contracting just isnt worth the hassle. Back to perm it isComment
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Originally posted by tsmith View PostAnd what happens if ...
Originally posted by tsmith View PostGoing to be a load of hassle sorting your tax out surely?
Originally posted by tsmith View PostRead a few horror stories of umbrella company screw ups
Most of the horror stories about umbrellas are because people have gone for unregistered umbrellas, or ones that operate schemes.
Contracting over the last decade has become more and more difficult and it's not going to get any easier over the next 4+ years unless something major changes in HMGov & HMRC.…Maybe we ain’t that young anymoreComment
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Equivalent date rates both outside and inside IR35
Originally posted by tsmith View PostJust had a potential role presented to me- not at interview stage yet but been informed...
Rate is £750 inside IR35 through an Umbrella - would give a net day rate after NIC and PAYE contributions of circa £350
This is a worst case figure and likely higher once tax codes and allowances are factored in – probably closer to £390-400
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Anyone on a similar rate now and willing to share their net per day please?Comment
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Originally posted by DanielW View PostI have the same question, from your calculation I would be looking at 52% reduction in the offered day rate,inside IR35 when compared with the day rate outside IR35. This does seem a big drop. Also, has anyone elected to work on an IR35 contract but manage all the tax deductions through their limited company and accountant. This would be my preferred option .
But I’ll be amazed if anyone can run an inside IR35 contract through their Ltd. Clients are on the hook to make sure the taxes are paid and they’ll make sure of that by refusing to work with Ltds and insisting on PAYE or Umbrellas."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...Comment
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Originally posted by cojak View PostYep, those calls sound about right.
But I’ll be amazed if anyone can run an inside IR35 contract through their Ltd. Clients are on the hook to make sure the taxes are paid and they’ll make sure of that by refusing to work with Ltds and insisting on PAYE or Umbrellas.
But as you can tell from the above there is zero reason why any agency will go to all that effort - it's easier to just say agency payroll or from this list of umbrella companies.merely at clientco for the entertainmentComment
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Originally posted by Paralytic View PostNope, was Public Sector.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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