is contracting viable on these figures?

[the_Opportunist]

Hi,,

quick questions from a newbie,

based on a rate of 320 per day, likely that the contract will be inside IR35 what is the likely net pay per month/week?

what do i need to deduct from this pot to be a realist, would i expect 70% to be what will remain after taxes?

based on the calculator it won't be worth it being inside ir35! outside yes!

do people typically get their contracts tuned so that they can work outside ir35? obviously on case by case basis

apologies as still in permie land! whilst money is not the be and end all not much point if my current permie salary is much the same as contractor for more hassle, just pondering this!

any info or some pointers, rules of thumb most welcome.

thanks

[moorfield]

Originally Posted by the_Opportunist

Hi,,
based on a rate of 320 per day, likely that the contract will be inside IR35 what is the likely net pay per month/week?

Very rough calculation.

£320 * 20 days * 60% = £3840 / month.

[the_Opportunist]

thanks for this,

so inside expect 40% ?

outside is it more like 20%


much thanks

[slackbloke]

Originally Posted by the_Opportunist

thanks for this,

so inside expect 40% ?

outside is it more like 20%


much thanks

Very doubtful you would get near 80% return outside IR35. More like 70-75 %.
Inside IR35 something like 65 %.

[tim123]

Originally Posted by the_Opportunist

Hi,,

quick questions from a newbie,

based on a rate of 320 per day, likely that the contract will be inside IR35 what is the likely net pay per month/week?

what do i need to deduct from this pot to be a realist, would i expect 70% to be what will remain after taxes?

based on the calculator it won't be worth it being inside ir35! outside yes!

Oh to have the choice.

If I turned down 40 pound per hour inside IR35, I'd spend most of the year not working.

The suggestion that "it's not worth it" when the alternative is earning nothing is stupid.

tim

[NotAllThere]

He's still in permie land, and considering whether to make the switch.

Financial gains are one thing (though I get about £40-£50k more gross income than a permie). I contract for the lifestyle - more holidays, more variety, more flexibility, less politics, less management crap, no performance reviews, fewer meetings.

[malvolio]

You have to ask, why inside IR35? You need to do some research.

Also £40 an hour is the same net earning power as £40k pa. if you want to do a realistic comparison.

[moorfield]

Originally Posted by NotAllThere

He's still in permie land, and considering whether to make the switch.

Financial gains are one thing (though I get about £40-£50k more gross income than a permie). I contract for the lifestyle - more holidays, more variety, more flexibility, less politics, less management crap, no performance reviews, fewer meetings.

WHS.

[LittlestHobbo]

Originally Posted by malvolio

You have to ask, why inside IR35? You need to do some research.

Also £40 an hour is the same net earning power as £40k pa. if you want to do a realistic comparison.

£40k per annum sallary the same as £40 per hour contract rate? How do you work that out?

[synoniv]

Wonder what WHS stands for ?

Originally Posted by moorfield

WHS.