I've just switched to being a contractor and last week landed a 3 month contract with a central government agency. However, there is one problem. Upon getting the contract reviewed - I'm told that the contract is inside IR35.

It is paying 300/d for 3 months, but my accountant will have to make deemed payments. I'm new to this, but I'm wondering what the impact will be on me financially if I do this for 3 months only. Going for extensions is not a good idea I'm told.

What would my day rate be reduced to? How much extra tax would I pay? I don't want an exact figure now - just something indicative. If that's even possible!

(time to get back on the job boards just in case I think)