Contractor vs Permie Comparison spreadsheet

[MrWebDev]

Before I begin I know that the contractor vs permie question has been asked many times before, and often annual salary / 1000 is quoted, I've also scoured Google searching within the forum for the answer.

I'm trying to create a spreadsheet which gives me a fairly accurate representation of what I need to earn as a permie to match what I currently earn as a contractor if I were to take out the maximum available out of my company. I'd like the comparison to include fees/expenses which I'd only incur as a contractor, such as accountancy, insurances etc to be included in the comparison because this is an expense that I wouldn't have as a permie.

Would someone at least be able to point me in the right direction, better still be able to share the workings they've used to if they've done something similar?

[malvolio]

Before I begin I know that the contractor vs permie question has been asked many times before, and often annual salary / 1000 is quoted, I've also scoured Google searching within the forum for the answer.

I'm trying to create a spreadsheet which gives me a fairly accurate representation of what I need to earn as a permie to match what I currently earn as a contractor if I were to take out the maximum available out of my company. I'd like the comparison to include fees/expenses which I'd only incur as a contractor, such as accountancy, insurances etc to be included in the comparison because this is an expense that I wouldn't have as a permie.

Would someone at least be able to point me in the right direction, better still be able to share the workings they've used to if they've done something similar?

Ermm, hourly rate * 1000 - starting salary is as good as anything; that is how it was worked out originally, it allows for the various hidden costs and average billable days and it's not a random number.

To get more accurate numbers for your situation, and assuming you know your net take home for the last few years, then the calculators will get as close as anything. There's a list of them over there ----->>

[MrButton]

Happy to send you my spreadsheet I use for rough annual accounts to help me estimate both company and personal tax liability. PM me your email.

It’s turned out to be very accurate based on the accounts provided by my accountant.

[TheFaQQer]

Work out how much you can take / want to take home.

Then just look for a decent site that allows you to enter your salary and calculate tax on that, there are lots around. Personally, I use https://listentotaxman.com/

[MrButton]

Work out how much you can take / want to take home.

Then just look for a decent site that allows you to enter your salary and calculate tax on that, there are lots around. Personally, I use https://listentotaxman.com/

This is an excellent site for working out Paye! Been using it for years....

[MrWebDev]

Work out how much you can take / want to take home.

Then just look for a decent site that allows you to enter your salary and calculate tax on that, there are lots around. Personally, I use https://listentotaxman.com/

That's pretty much what I am doing, however I'm not sure what to do when it comes to factoring in the cost of such things like travel, food, buying a laptop etc. I realise these are business costs (and in my case genuine expenses), but it's also likely they're costs that I'd have if I were a permie too. I also mentioned earlier that there are costs such as accountancy, insurances etc which I wouldn't incur if I were a permie too.

[MrWebDev]

Happy to send you my spreadsheet I use for rough annual accounts to help me estimate both company and personal tax liability. PM me your email.

It’s turned out to be very accurate based on the accounts provided by my accountant.

Thanks for the offer sketchandsunshine however I've already managed to get that bit done pretty accurately too myself now.

[malvolio]

That's pretty much what I am doing, however I'm not sure what to do when it comes to factoring in the cost of such things like travel, food, buying a laptop etc. I realise these are business costs (and in my case genuine expenses), but it's also likely they're costs that I'd have if I were a permie too. I also mentioned earlier that there are costs such as accountancy, insurances etc which I wouldn't incur if I were a permie too.

Slightly surprised you can't accurately identify those costs (in fact, all your operating expenditure and personal payments) already. How are you tracking your company expenditure?

But go permanent and all those business costs disappear, all you remain liable for is employees NICs and any pension contributions. Expenses are in the gift of your employer so are out of scope; although if you're making money from expenses then you're doing something wrong so they can also be ignored.

[TheFaQQer]

That's pretty much what I am doing, however I'm not sure what to do when it comes to factoring in the cost of such things like travel, food, buying a laptop etc. I realise these are business costs (and in my case genuine expenses), but it's also likely they're costs that I'd have if I were a permie too. I also mentioned earlier that there are costs such as accountancy, insurances etc which I wouldn't incur if I were a permie too.

Why would you be paying travel and subsistence expenses as a permanent employee? Why would you be buying a laptop for work as an employee?

[MrWebDev]

Why would you be paying travel and subsistence expenses as a permanent employee? Why would you be buying a laptop for work as an employee?

I'd be paying travel and subsistence because I'd still need to travel to get to work. Whilst I use my laptop for work, there's also an amount of personal use which I understand in the case of a laptop is permitted.

Slightly surprised you can't accurately identify those costs (in fact, all your operating expenditure and personal payments) already. How are you tracking your company expenditure?

But go permanent and all those business costs disappear, all you remain liable for is employees NICs and any pension contributions. Expenses are in the gift of your employer so are out of scope; although if you're making money from expenses then you're doing something wrong so they can also be ignored.

I have worked out the costs mentioned, I use InTouch. I guess the question I have is, do I subtract the amount from a permanent salary after tax to take into account this expenditure?