Beyond 24 month and declaring inside IR35, will it be worth it??

[gingerjedi]

I guess this one is for the accountants who frequent the board.

My current rate is £170 a day and I claim roughly 500 miles a week and £10 per day toll/parking, I declare myself outside IR35 so pay below the NIC threshold and then dividends for the rest.

I know I'm not going to like the answer but I'm going to be over the 24 month rule if I take a renewal and I'm getting increasingly tetchy about my IR35 status as I know I am most probably caught.

So if I stay beyond 24 months and I declare myself inside IR35 what would I take home? I currently take between £2800-£3400 (depending on 4 or 5 weeks of invoices).

[northernladuk]

This help?

Calculators

[Sally@InTouch]

Around £2150 (4 weeks) with the VAT rate scheme, depending on your tax code.
Have you considered having a proper IR35 review?

[Maslins]

For people in your situation it makes me wonder whether you should be contracting at all (this isn't meant to be an insult though some on this board may see it that way).

If you're working in one place >2 years, presumably you're happy and settled there. Why not ask for a PAYE role? You'd be negligibly worse off than if inside IR35 (plus you'd have lost travel expenses anyway), but you'd get all the benefits, holiday pay, sick pay, probably company pension contributions etc.

Otherwise, if you do want to be a contractor then I'd suggest you should be getting out of there anyway, you'll likely gain more experience moving to somewhere new, plus from a geeky point of view it'll reset the 24 month clock (unless your new client is next door) and will enable you to reassess your IR35 position.

[gingerjedi]

Around £2150 (4 weeks) with the VAT rate scheme, depending on your tax code.
Have you considered having a proper IR35 review?

I have moved into a support team and I'm pretty much part of the furniture with the permies so I am most probably caught, reading the scenarios I wouldn't stand a chance though it certainly isn't fair considering my lack of any permy benefits whatsoever.

Oh well, thanks anyway.

[gingerjedi]

For people in your situation it makes me wonder whether you should be contracting at all (this isn't meant to be an insult though some on this board may see it that way).

If you're working in one place >2 years, presumably you're happy and settled there. Why not ask for a PAYE role? You'd be negligibly worse off than if inside IR35 (plus you'd have lost travel expenses anyway), but you'd get all the benefits, holiday pay, sick pay, probably company pension contributions etc.

Otherwise, if you do want to be a contractor then I'd suggest you should be getting out of there anyway, you'll likely gain more experience moving to somewhere new, plus from a geeky point of view it'll reset the 24 month clock (unless your new client is next door) and will enable you to reassess your IR35 position.

Because it's 112 mile round trip every day and the permies are on £24k whilst I invoice for £44k.

I am fed up with the travel and depressed rates and I would consider permy if it was on my doorstep, the added pressure is 2 young kids and wife only working 12 hours a week which would make a permy wage very tight indeed.

I've been contracting for 9 years BTW so I have moved around a fair bit.

[Sausage Surprise]

Because it's 112 mile round trip every day and the permies are on £24k whilst I invoice for £44k.

I am fed up with the travel and depressed rates and I would consider permy if it was on my doorstep, the added pressure is 2 young kids and wife only working 12 hours a week which would make a permy wage very tight indeed.

I've been contracting for 9 years BTW so I have moved around a fair bit.

You need to start looking for more than £170 a day.

[captainham]

I have moved into a support team and I'm pretty much part of the furniture with the permies so I am most probably caught, reading the scenarios I wouldn't stand a chance though it certainly isn't fair considering my lack of any permy benefits whatsoever.

Oh well, thanks anyway.

This is why you invoice considerably more than the permies get paid though, that's (part of) the point of contracting.

[gingerjedi]

You need to start looking for more than £170 a day.

I'm in support, rates have gone backwards due to high number of former employees accepting crappy rates.

I know I need to specialise and move on like you said, just stuck in a rut with the lack of opportunity at the moment.

[FiveTimes]

Could it be time to switch to umbrella ? as the cost of running your ltd probably isnt worth it ?