Originally posted by cwah
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Ir35 calculator to know when its not worth it to work
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Originally posted by eek View Post
Really? You don't need anything to decide to do that.
Employer NI alone is worth more than 10% and that's before you factor in expenses.
The difficult decision is when the difference in rates isn't 10% but when inside IR35 pays 25% (or more) extra.Leave a comment:
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Originally posted by eek View Post
Again wrong - but I won't point out where because it's utterly worthless.Leave a comment:
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Originally posted by cwah View PostI don't see what's wrong calculating that. I used these number to decide to quit my current contract inside IR35 to get into one outside IR35 at a 10% lower rate after 1 month in based on that. Feels like a great decision!
Employer NI alone is worth more than 10% and that's before you factor in expenses.
The difficult decision is when the difference in rates isn't 10% but when inside IR35 pays 25% (or more) extra.Leave a comment:
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I don't see what's wrong calculating that. I used these number to decide to quit my current contract inside IR35 to get into one outside IR35 at a 10% lower rate after 1 month in based on that. Feels like a great decision!Leave a comment:
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Originally posted by cwah View PostHere's a table showing a tax rate calculated, if that's what you are looking for:I've included the impact on the total tax rate by removing the personal allowance of £12,571. Is it what you are looking for? It does not make the previous table incorrect thoughTotal gross income Tax band Tax amount Total tax rate Comment £9,564 £9,564 £48 0.50% Apprenticeship levy £12,571 £3,007 £739 6.26% National insurance + Apprenticeship levy £50,270 £37,699 £15,730 32.86% Basic rate income tax + national insurance + apprenticeship levy £100,000 £49,730 £25,011 41.53% Higher rate income tax + national insurance + apprenticeship levy £125,140 £37,711 £18,179 47.71% Higher rate income tax + national insurance + apprenticeship levy + removal of personal allowance £149,999 £24,859 £12,503 48.14% Additional rate income tax + national insurance + apprenticeship levy £200,000 £50,001 £27,290 49.75% Additional rate income tax + national insurance + apprenticeship levy Leave a comment:
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Here's a table showing a tax rate calculated, if that's what you are looking for:I've included the impact on the total tax rate by removing the personal allowance of £12,571. Is it what you are looking for? It does not make the previous table incorrect thoughTotal gross income Tax band Tax amount Total tax rate Comment £9,564 £9,564 £48 0.50% Apprenticeship levy £12,571 £3,007 £739 6.26% National insurance + Apprenticeship levy £50,270 £37,699 £15,730 32.86% Basic rate income tax + national insurance + apprenticeship levy £100,000 £49,730 £25,011 41.53% Higher rate income tax + national insurance + apprenticeship levy £125,140 £37,711 £18,179 47.71% Higher rate income tax + national insurance + apprenticeship levy + removal of personal allowance £149,999 £24,859 £12,503 48.14% Additional rate income tax + national insurance + apprenticeship levy £200,000 £50,001 £27,290 49.75% Additional rate income tax + national insurance + apprenticeship levy Leave a comment:
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Originally posted by cwah View Post
Yeah I didn't add it but the 50% tax rate above this amount (£100k) is still correct. It's just it's removing the allowance benefit that is also taxed at 50%
Now I could correct it but - nope - it just isn't worth the hassle as both the idea and the implementation are wrong.Last edited by eek; 7 May 2021, 09:25.Leave a comment:
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Originally posted by eek View PostYou are also missing the taper at £100,000 where your tax allowance disappearsLeave a comment:
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I empathise with the sentiment of cwah's thread. Don't stop now
In the real world, many people are working barely to scrape by. As contractors we have the privilege of being able to "buy back" our own time (by choosing not to work).Leave a comment:
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