Originally posted by eek
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Ir35 calculator to know when its not worth it to work
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'CUK forum personality of 2011 - Winner - Yes really!!!! -
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.Comment
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Originally posted by cwah View Post
I do because I'm comparing against the net earning from an outside IR35 contract. As outside I have a 25% tax rate, and inside about 42%. So I need a 30% raise to compensate, not 10% as told earlier by the recruitment agency. Help making the right decision!merely at clientco for the entertainmentComment
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Originally posted by cwah View Post
I do because I'm comparing against the net earning from an outside IR35 contract. As outside I have a 25% tax rate, and inside about 42%. So I need a 30% raise to compensate, not 10% as told earlier by the recruitment agency. Help making the right decision!
Nobody cares... It's all about how much you want, and how much they are willing to pay. The rest is just noise and the agent will see it for what it is.See You Next TuesdayComment
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Originally posted by Lance View Post
negotiating based on your personal tax position isn't going to change anything.
Nobody cares... It's all about how much you want, and how much they are willing to pay. The rest is just noise and the agent will see it for what it is.
But if everything else is equal - think of the pension contributions.merely at clientco for the entertainmentComment
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Originally posted by eek View Post
How do you get to 25%?Comment
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Originally posted by cwah View Post
19% corporation tax + 7.5% dividend tax. I know there are other variable like expenses (eg. income is an expense) but it's a good ballpark.
merely at clientco for the entertainmentComment
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Originally posted by eek View Post
19%+7.5%=25% Really? - thanks for confirming exactly how bad your maths is.
I grossed to 25% but I could have said 25.075% tax rate if I wanted to be pedantic..Comment
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Originally posted by cwah View Post
I do because I'm comparing against the net earning from an outside IR35 contract. As outside I have a 25% tax rate, and inside about 42%. So I need a 30% raise to compensate, not 10% as told earlier by the recruitment agency. Help making the right decision!
We can go round for days here making you look like an idiot - it really isn't difficult.merely at clientco for the entertainmentComment
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Originally posted by eek View Post
Yet if I go back to your table the inside IR35 tax rate is listed by you not at 42% but at 32.86%....
We can go round for days here making you look like an idiot - it really isn't difficult.
- 32.86% would be the total tax rate if you were to earn £50,270
- 42% is the basic tax rate, so the tax you pay when you earn between £12,571 and £50,270Comment
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