Working out an Annual Salary

[d000hg]

In terms of eventual net take home, £275 is very roughly equivalent to a £34k permie salary.

HTH...

What? When I jumped to contracting I was on ~£30K and the £200 level contract work I got left me far better off.

[Forbes Young]

Hello,

I have seen a contract locally for £275 a day and am tempted to look into contracting as a way of life. I appreciate I need a good accountant and to such before taking the leap. But I wondered what an approximate, indicative gross annual salary would be for such a daily rate? This website tells me £66,000 per annum: Free Annual Salary Calculator | Pinnacle Accounting and Tax

Is this safe to rely on or is it missing subtleties. Again, just looking for some indications as I'd never take the leap without proper accounting advice. Thanks!

Its all a matter of opinion of course. What you have to factor in is time for holiday/time spent in between contracts so I would base it on a 44 week working year (£275 x 5 x 44 = £60,500).
As a contractor working outside of IR35 through your own ltd company with a £60k turnover, your take home remuneration should be approx 80% = £48,500. The offtakes (NI & IT) on a salary of £66k would be approx £21k which would leave you with approx £45k.

Graeme Bennett ACMA MBA