Contracting or Umberralla

[WTFH]

£150PD won't keep a Honda CRV in petrol.


(it also won't keep an A4 3L Allroad in tyres, but that's another story)

[vik845]

At £150 PD, would you not be better off going perm?

Only if you get perm roles

[MrMarkyMark]

Only if you get perm roles

Fair enough, good luck with it

[SimonMac]

Have you seen what First Line Service Desk roles pay nowadays???

Should I ask PC?

[LisaContractorUmbrella]

I have done contracting before for 6 -7 months and my contract is outside ir35 checked with my accountant. I have heard that contractors will ending up paying more dividends from TAX period 2016/17 compared to 2015/16. will I still be better of contracting through ltd company?

Thanks

As others have said, on that kind of rate it won't make a massive amount of difference - do you mind me asking what the role is??

[ASB]

Simple comparison.

150 pd with a reputable umbrella (e.g. lisa) should produce something like:

150 x 260 = 39,000 gross = 37,500 after fees = salary of 34k (+3572 ers ni) = 26,207 net

Outside IR35 and max dividend route (next year with the new higher dividend taxes assuming accountancy costs of 1500 same as umbrella costs then:-

37,500 - 10,000 salary = 27,500 less CT = 22000 dividend tax = 1200 dividend tax 500 er's and ee's ni on salary yields approx 30,300. So a decent bit ahead on the outside ir35 case. but if doing it for less than a year then costs still likely to be 1500.

Obviously you won't work 260 days in a year but it is just intended to show a reasonable relative comparison.