65k + 25 Days Holiday + 10% Pension + Health + Potentional 20% Bonus Vs Contract

[BlasterBates]

I am pretty strong at calculus but cannot make this add up...

Can you breakdown your working here?

390 * 240 = 93 600

Taken out as 22% tax - I have a lot of savings so do not need to take any money out from company and can wind the company down using entreprenurial tax rul and pay 10% tax.

I cannot see how the other package is better AFTER tax.

The contract I have is firmly outside IR35

I calculated on 220 days. If you work 240 days you'll become very pale...and weedy through lack of exercise.

Then of course it is more but ....with all your costs and doobries that is a realistic take home.

Are you going to leave the money in forever?? at some point you need to take it out, and then you'll get lumbered with a higher tax rate, unless you are planning time out, and that is up and above the corp tax rate that you'll pay on your profits.

No use the prudent comparison I gave you. Certainly worth considering in consultation with an accountant leaving a war chest in the company. My money comes out and goes straight into the stock market.

But I'd still go contracting.

[SteveMcadden1]

I calculated on 220 days. If you work 240 days you'll become very pale...and weedy through lack of exercise.

Then of course it is more but ....with all your costs and doobries that is a realistic take home.

Are you going to leave the money in forever?? at some point you need to take it out, and then you'll get lumbered with a higher tax rate, unless you are planning time out, and that is up and above the corp tax rate that you'll pay on your profits.

No use the prudent comparison I gave you. Certainly worth considering in consultation with an accountant leaving a war chest in the company. My money comes out and goes straight into the stock market.

But I'd still go contracting.

Why cant you invest in the stock market using your companys money?? You do not need to take it out at all.

I think you might even be able to classify it as a 'loan' to your self from the company

[Archangel]

Why cant you invest in the stock market using your companys money?? You do not need to take it out at all.

I think you might even be able to classify it as a 'loan' to your self from the company

1) A company does not have a CGT allowance.
2) Loans to directors are iffy unless < 5k

[SteveMcadden1]

1) A company does not have a CGT allowance.
2) Loans to directors are iffy unless < 5k

Good point - I see what you mean

[PhilAtBFCA]

perm or Contract

SteveMcadden1

You could use this calculator spreadsheet ( video instructions too !) to compare.

You would need to do two scenarios, one with your proposed contracting offer and one with paye employee, the spreadsheet compares, umbrella, Limited, agency payroll, paye employee,partnership and sole traders.

I should give you enough information to make agood decision for your circumstances.

Phil