[Bradley]

Originally Posted by simonsjdaccountancy

How much will I take home?

Outside IR35

If you fall outside IR35 the comparative income to you on the three choices, would be as follows, taken over a three year period:

Contract value Own Ltd Co Umbrella Composite
£50,000 pa £107,609.74 £89,595.48 £100,590.86
£75,000 pa £148,510.44 £124,251.50 £138,490.02
£100,000 pa £189,410.75 £158,898.50 £171,764.77

I have not taken into account expenses in calculating these figures as whichever system you use, the allowable expenses will be identical. Do NOT believe the marketing hype regarding “special dispensations” you may have come across. For an expense to be allowable you must have actually spent the amount in question.

Inside IR35

If you fall inside IR35 then the tax payable via an umbrella or composite Company will be around the same. There will be a saving of around 5% if you operate through your own Limited Company.

Hope this helps, and feel free to add anything else you think useful.

Simon - did you assume a minimum wage? Did you assume that all profits would be paid as dividends? Is it for one shareholder only?