Rate comparison Public IR35 vs Private non IR35
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    Default Rate comparison Public IR35 vs Private non IR35

    Is there a general rule which you can apply to arrive at the equivelant new rate within IR35 ?

    So if your daily rate previously was say 4 or 500 would you apply a percentage to arrive at what the equivalent new rate would be to earn the same amount as previously within public sector IR35 ?

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    When this all kicked of seem to think we were talking about 25 to 30% to be about the same but I don't recall anyone finding a calculator.
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    Quote Originally Posted by northernladuk View Post
    When this all kicked of seem to think we were talking about 25 to 30% to be about the same but I don't recall anyone finding a calculator.
    I'd say that estimate is ballpark but it also depends on travel and expenses you might incur in terms of overall profitability..

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    Also the recent change for public sector IR35 meaning you or your Ltd must be paid net of tax by the fee payer, no longer can your Ltd be paid gross and sort out the tax yourself in the most efficient way possible. The fee payer is typically the Agency you're contracted with but they don't always offer a cost effective payroll option so umbrella is the common alternative. This additional payroll aspect will cost something however it's provided.

    Also the recent apprentice levy tax (0.5%) affecting the bigger players who are usually more reliable to not go bust while owing you money, so may not be worth trying to avoid this one.

    Also the IR35 5% unaccounted for expense allowance is no longer.

    So yes, an up to date calculator would be nice.
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    I would say the two aren't comparable, unless your only focus is spending all you earn. The whole point of IR35 is that it forces you to run YourCo with no reserves meaning you have no efficient options for covering non-working time. You can of course save money personally for such things, but that comes out of taxed income so it's at least 30% more expensive before you start.

    So comparing IR35 and non-IR35 is actually something of an apples and oranges question. You have to look much longer term.
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