Take home calculators

[VillageContractor]

Hi all,

I'm about to start contracting but wanted to make sure I know what I'm getting into.

Has anyone used the SJD or Nixon Williams take home calculators? Are they broadly accurate? Or is there something I'm missing?

Thanks

[malvolio]

Hi all,

I'm about to start contracting but wanted to make sure I know what I'm getting into.

Has anyone used the SJD or Nixon Williams take home calculators? Are they broadly accurate? Or is there something I'm missing?

Thanks

Lots. They are only estimates, do not rely on them. Ignore expenses, they are not income, although they may reduce your personal tax slightly. Don't assume you work 365 days a year like the calculators do, it's more like 210. The objective is to cover your bench time as well as your working time, so taking everything out of the company is generally a bad idea. All of which means the calculators, long term, aren't that useful.

Plenty of good guides around, over there --->, on the IPSE website (www.ipse.co.uk) and both the accountants' sites. Get reading.

[VillageContractor]

Thanks Mal - I've ignored the expenses bit but I've calculated for 240 days a year. Good to know what others use.

Steve the money isn't the concern, it's more that I don't want any nasty surprises.

[The Spartan]

Thanks Mal - I've ignored the expenses bit but I've calculated for 240 days a year. Good to know what others use.

Steve the money isn't the concern, it's more that I don't want any nasty surprises.

I suggest you read about IR35 then, there's a link over there ------------------------------------------------------->

[Old Greg]

Thanks Mal - I've ignored the expenses bit but I've calculated for 240 days a year. Good to know what others use.

Steve the money isn't the concern, it's more that I don't want any nasty surprises.

210 days is reasonable. I reckon on 220 days, but it's less if you take shorter contracts and dependes of course on how much holiday you take and how much you allow for sickness.

240 days = 48 weeks per years, so assumes you take off bank holidays, a couple of days sick, two week holidays and no bench time.

[MarillionFan]

210 days is reasonable. I reckon on 220 days, but it's less if you take shorter contracts and dependes of course on how much holiday you take and how much you allow for sickness.

240 days = 48 weeks per years, so assumes you take off bank holidays, a couple of days sick, two week holidays and no bench time.

Best to do a range. Best case, worst case, likely. 240 is the max.

[TheFaQQer]

Thanks Mal - I've ignored the expenses bit but I've calculated for 240 days a year. Good to know what others use.

I've not counted the days billed since my trading year 2011-12 (and the past few have been good), but before that my longest year was 204 billable days.

[VillageContractor]

Most of the contracts in my industry and role are 6 months which get extended at least once. So I don't plan on much bench time, although I know it may not work out like that.

I plan on taking very little if any holiday for the first year to help build up my war chest.

[Old Greg]

Most of the contracts in my industry and role are 6 months which get extended at least once. So I don't plan on much bench time, although I know it may not work out like that.

I plan on taking very little if any holiday for the first year to help build up my war chest.

That is a good strategy, as long as you are not reliant on that strategy.

[Waldorf]

The one at Nixon Williams allows you to select your own criteria, so it is more transparent than others I have seen. You can also print the breakdown so nothing is hidden.

https://www.nixonwilliams.com/net_pay_calculator.asp