hi,
I am going back into contracting after being in a permie job since 2001. I see deals advertised on this site that look suspiciously good and other not so good. Do the people who run this site vet their advertizers or is 83% really possible? I am inclined to think that is unrealistic. But also just because an umbrella company offers you a package of say 67%, that does not mean that they have conducted your tax affairs well and you are will not get liable to charges later. I suppose I am asking what is the best way to personally vet an IR35-solution providing company. Of course, they will say it is all legal, but how can I find out? I don't mind paying,so can anyone recommend - via personal email to avoid spam on this site - an independent financial adivisor or solution that the have had a good experience with? Am i right in thinking that if I am outside IR35, my own limited company is still the best way to go?
Any help would be appreciated for an old-timer who needs teaching new tricks.
Thanks,
Chris
PS I have read SimonJDAccountancy's stickie and the advice he gives seems great but the figures he gives on this site do not match the ones he gives on his own company's homepage. I quote from the stickie:
If you fall outside IR35 the comparative income to you on the three choices, would be as follows, taken over a three year period:
Contract value Own Ltd Co Umbrella Composite
£50,000 pa £107,609.74 £89,595.48 £100,590.86
£75,000 pa £148,510.44 £124,251.50 £138,490.02
£100,000 pa £189,410.75 £158,898.50 £171,764.77
BUT HIS OWN SITE SAYS:
Consider these examples which give the return over a three year period:
* Invoicing £50,000 each year gives retained income of £131,646.30 and tax payable of 16.88%
* Invoicing £75,000 each year gives retained income of £161,178.50 and tax payable of 18.99%
* Invoicing £100,000 each year gives retained income of £210,259.29 and tax payable of 21.04%
Which is right? This is not an attempt to discredit Simon's firm but a genuine request for info. In fact, get in touch, Simon, if you can help me out.
I am going back into contracting after being in a permie job since 2001. I see deals advertised on this site that look suspiciously good and other not so good. Do the people who run this site vet their advertizers or is 83% really possible? I am inclined to think that is unrealistic. But also just because an umbrella company offers you a package of say 67%, that does not mean that they have conducted your tax affairs well and you are will not get liable to charges later. I suppose I am asking what is the best way to personally vet an IR35-solution providing company. Of course, they will say it is all legal, but how can I find out? I don't mind paying,so can anyone recommend - via personal email to avoid spam on this site - an independent financial adivisor or solution that the have had a good experience with? Am i right in thinking that if I am outside IR35, my own limited company is still the best way to go?
Any help would be appreciated for an old-timer who needs teaching new tricks.
Thanks,
Chris
PS I have read SimonJDAccountancy's stickie and the advice he gives seems great but the figures he gives on this site do not match the ones he gives on his own company's homepage. I quote from the stickie:
If you fall outside IR35 the comparative income to you on the three choices, would be as follows, taken over a three year period:
Contract value Own Ltd Co Umbrella Composite
£50,000 pa £107,609.74 £89,595.48 £100,590.86
£75,000 pa £148,510.44 £124,251.50 £138,490.02
£100,000 pa £189,410.75 £158,898.50 £171,764.77
BUT HIS OWN SITE SAYS:
Consider these examples which give the return over a three year period:
* Invoicing £50,000 each year gives retained income of £131,646.30 and tax payable of 16.88%
* Invoicing £75,000 each year gives retained income of £161,178.50 and tax payable of 18.99%
* Invoicing £100,000 each year gives retained income of £210,259.29 and tax payable of 21.04%
Which is right? This is not an attempt to discredit Simon's firm but a genuine request for info. In fact, get in touch, Simon, if you can help me out.
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