Tax in 2015-16

[ASB]

http://forums.contractoruk.com/gener...ce-paye-4.html

amongst the various comments is the answer.

[PerfectStorm]

Is not a real comparison though. Most contractors turning over 100k cannot command 100k as a permie so it's a bit of a flawed comparison.

And that is precisely the point I was making.

People go on about the marginal tax saving whilst ignoring the fact that the 'input number' is in most cases considerably larger - that's where the real money-making comes from.

[ASB]

And that is precisely the point I was making.

People go on about the marginal tax saving whilst ignoring the fact that the 'input number' is in most cases considerably larger - that's where the real money-making comes from.

It is important to figure out the input number. I need to factor in car allowance, non contributory pension, life insurance, and leave. This narrows things considerably for me.

If I worked 180 days at likely contract rate it would be even. Given I work 221 days a year that is a useful, but not spectacular increase.

If I was umbrella or ir35 then it would go up to about 200 days to get the same gross.

The premiums is still there, that plus the more benign tax regike outside ir35 can maje a very substantial difference in net available income.

[Cirrus]

The premiums is still there, that plus the more benign tax regike outside ir35 can maje a very substantial difference in net available income.

Drinking and posting: not easy...

[Contreras]

The premium is still there, that plus the more benign tax regime outside ir35 can make a very substantial difference in net available income.

Drinking and posting: not easy...

Neither with a visual impairment. But you get the gist...

[ASB]

Look at the letter each side of the typo. It's usually one of them. !!

[dugs]

The biggest difference, bigger than the difference in national insurance itself and which people ALWAYS miss, is this:

It's a lot easier to get a job paying 100k before tax to a limited company that can be terminated immediately, than it is to get the same as a normal PAYE job, with holidays, sick pay, redundancies and benefits to pay for, because it costs about 2x Salary to employee someone in the UK and be able to account for all of these things.

If you're willing to take the risk on the latter (and pay for your own holidays as and when needed) the extra money, rather than being spent on someone's maternity leave or paying off some rubbish worker's 'redundancy', goes to you.

That is why - unless you're on a crap day rate - contracting is better.

I agree that's it better to be in a £100K perm role than £500 a day contracting.

My numbers were to assume I "maxed" everything, ie worked around 250 days a year and not take any expenses (unrealistic I know).

Contractors are short term, so to compensate that, they ought to have additional reward, such as financial but from what I've seen, going forwards in the tax year 206-17, there's very little benefit going contracting.

I am seeking an absolute final figure:

So if a perm employee on £100K gross takes home £65K, what is the maximum figure a contractor with £100K revenue can take home (forget pensions, etc.)?

Thanks

[BrilloPad]

So if a perm employee on £100K gross takes home £65K, what is the maximum figure a contractor with £100K revenue can take home (forget pensions, etc.)?

Thanks

Is income splitting allowed? How much does accountant cost? How much T&S is allowed?

Assuming the answers are yes, 0, 0 I reckon you and your partner can take home £81k.

Don't forget if you use the BrilloScheme you can take take home 95k! It is QC certified. Well I am certainly certified and you should be too if you attempt any aggressive avoidance. Unless you are a MP....

[jamesbrown]

FFS. Several people have told you that your question is meaningless. A 100k employee is not, in any way, comparable to a business with a 100k turnover. If you want to make any sort of sensible comparison, you need to start with the total cost of a 100k employee to that business.

[ASB]

FFS. Several people have told you that your question is meaningless. A 100k employee is not, in any way, comparable to a business with a 100k turnover. If you want to make any sort of sensible comparison, you need to start with the total cost of a 100k employee to that business.

And that is also impossible since everybody has a different package. An estimate might be 100 er ni 12 bonus 10 nc pension 10 car allowance 8 life ins 1 health 1 total 142.