e-gismos ir35 calculator

[nullfork]

All,

I've been on the scout for some /realistic/ and detailed IR35 comparison calculators and found this one.

Looks pretty good to me, for instance I plugged in gross earnings of 70k, shares 100% to consultant, 11k salary, 1.5k corp costs and 3.5k expenses (no pension). It seems to think I'm 3.5k per annum worse off trading inside IR35. That sounds much more realistic than the "other" calculators that seem to double that estimate

I realise it's using 2004/05 rates but the calculations won't be affected too much.

What does everyone think, sound about right?


Admin further reading note: IR35 forum publishes minutes on customer segmentation model.

[jmo21]

try http://calculator.contractoruk.com/

[PhilAtBFCA]

Comparison Calculator

Hi nullfork

Feel free to download our spreadsheet calculator which compares the net income between Umbrella, Sole Trader, Partnerships, PAYE and Limited Company Inside and Outside IR35.

You just need to enter your contract rate and expenses. There is a full breakdown of all the company and personal taxes and a net income calculation.

Go to www.blevinsfranksaccountants.com , register on the wbesite, then go to Business Library and its in toold and documents.

Any problems just PM me.

Good luck

Phil

[nullfork]

try http://calculator.contractoruk.com/

Thanks for the suggestion, however (and forgive me if I'm being stupid!), but that calculator seems broken!

It seems they are deducting 'Additional' Employers NI twice..

Anyone else confirm this?

[nullfork]

Hi nullfork

Feel free to download our spreadsheet calculator which compares the net income between Umbrella, Sole Trader, Partnerships, PAYE and Limited Company Inside and Outside IR35.

You just need to enter your contract rate and expenses. There is a full breakdown of all the company and personal taxes and a net income calculation.

Go to www.blevinsfranksaccountants.com , register on the wbesite, then go to Business Library and its in toold and documents.

Any problems just PM me.

Good luck

Phil

Thanks for this Phil, looks like a very well implemented spreadsheet. I'm going to review the output and I'll be in touch. I do have one question though.

The Inside IR35 calculations show a dividend being taken (all be it only 3.5k for the year), I thought all monies had to be as PAYE salary or Deemed salary when trading inside?

Thanks!

[PhilAtBFCA]

Dividends Inside IR35

Hi nullfork,

Thanks for the comment about the spreadsheet :-)

The sheet calculates the Deemed Payment based on the contract income, but you may well have profit from the flat rate vat scheme and also some from the fact that your overheads may be less than the 5% allowance in the deemed payment.

So some "Inside IR35" companies can make a profit, and so the shareholders can have a dividend.

Hope that helps

Phil