IR35 - Contracts for government and private during the same tax year

[adrdilauro]

Hi guys, thanks for your messages.

I needed to know one specific thing, and it's what Malvolio has written.

I am not naive, I know that you cannot simply calculate a contractor income as if it were a permanent salary. What I need though is the formula to calculate it, and in case of IR35 I didn't find it because most forums are about how to avoid it, not what to do if you are in it.

By the way, to share my first impression, if you compare in and out IR35 on a three months contract, and assume that every other contract in the tax year will be outside IR35, the difference of net is not very big.

[northernladuk]

I am not naive, I know that you cannot simply calculate a contractor income as if it were a permanent salary.

Ah. We've just about got there.

What I need though is the formula to calculate it,

Oh... erm...

if you compare in and out IR35 on a three months contract, and assume that every other contract in the tax year will be outside IR35.the difference of net is not very big.

Sheesh. Back to square one then. I believe Mal has a message for you. I am sure he'll be happy to take the time to re-iterate it for you.

[malvolio]

Sheesh. Back to square one then. I believe Mal has a message for you. I am sure he'll be happy to take the time to re-iterate it for you.

I rather doubt that...

[gables]

Caveated with all that's been said, this calculator can give you a rough indicator: Contractor Umbrella calculator