Returnee: What's the take-home on 440/day via Ltd Company

[Stevo]

Hello everyone, I'm a new member.

I've been browsing this site. Fantastic find. Lots of good info and chat. I've seen advice about this topic, but no firm numbers.


I've been contracting for 9 years in Windows systems support. Been outside UK for about 7 years now.

I have an offer in the city at GBP 440/day and I don't know if I should go for it. I will be caught by ir35.

I've tried some online tax calculators and they suggest for a single man that I'll pay a HUGE amount of tax. Approaching 50% of the gross. Please tell me that is wrong. If I have to pay that much tax, plus 17.5% tax on every purchase plus dearest rents in Europe and v high costs .... I'm worrying that a move to London will leave me poorer !!

I have no car, house, children, wife. So should be kind of easy to calc.

In your experience what's the typical ball-park take-home on 440/day. I realise we all have different expenses to take account of.

Also: I've been pointed towards Isle of Man type off-shore solutions offering approx 80% take-home. I suspect these would not stand up to scrutiny by the authorities. Whatever solution I might go for needs to be pretty much all above-board as I don't need the stress.


What do you think ?

How do you guys tolerate ir35 ?

Stevo


PS: when I last lived in uk I had a ltd co. through IAS/Giant. Absolute. Total. Nightmare.
So if I do it again I guess I would contact one of the recommended accountants I've see on this board.

[Dalek Supreme]

Are you sure you're inside IR35? Will you client tell you not just what to do, but how to do it? Will they have to pay you even if there's no work to do?

[MrsGoof]

try here steve http://calculator.contractoruk.com/

If caught by IR35 and running your own Ltd then the follwoing applies

From your Net Co. income

take off 5% for your Company to pay bills / buy toys...

less directors pension
less allowable expences (travel...)

then you pay the rest to yourself, which is made up of (Tax, Employee Ni and Employer Ni)

HTH

MG

[simondolan]

Take home

50% certainly wouldn't be inaccurate I'm afraid under IR35.

As Dalek says, check your IR35 status carefully - there really aren't that many contracts about these days that are IR35 failures.

Email me a copy of your contract over if you like and I'll take a look.

simon at sjdaccountancy.com