£140 day rate.....what is the equivalent salary PAYE figure?

[mosaslop]

hello,

this is my first time ever contracting. iv'e decided to set up my own company (i'm an accountant, part qualified at the moment but good experience).
ive got my first contract through an agency initially for 6 months. All ive been told is that its a day rate of £140.

i have not signed anything yet, and haven't seen the contract yet. I'm trying to determine what it is worth (both inside and outside IR35) if it was represented as an annual gross salary figure...
what is £140 equivalent to?

if i do this calculation: £140 x 5 days x 45 weeks = £31,500
and put that figure into here The Salary Calculator - Take-Home tax calculator i get a net monthly income of £1,752.87 (5% personal pension contribution, student loan repayment 1)

when i put that same £140 daily rate into here: IR35 Calculator - How much does IR35 Cost you?

i get a net monthly income of £1,599

i dont understand. why is it so much lower?

[cojak]

hello,

this is my first time ever contracting. iv'e decided to set up my own company (i'm an accountant, part qualified at the moment but good experience).
ive got my first contract through an agency initially for 6 months. All ive been told is that its a day rate of £140.

i have not signed anything yet, and haven't seen the contract yet. I'm trying to determine what it is worth (both inside and outside IR35) if it was represented as an annual gross salary figure...
what is £140 equivalent to?

if i do this calculation: £140 x 5 days x 45 weeks = £31,500
and put that figure into here The Salary Calculator - Take-Home tax calculator i get a net monthly income of £1,752.87 (5% personal pension contribution, student loan repayment 1)

when i put that same £140 daily rate into here: IR35 Calculator - How much does IR35 Cost you?

i get a net monthly income of £1,599

i dont understand. why is it so much lower?

Welcome!

On the right you'll find CUK Navigation. >>>>>>>>>

Look down and you'll come to the First Timers section. Have a read through there.

Then pay particular attention to IR35.

If you go into the Accounting/Legal forum you'll discover the thread Basic advice when running your own contractor business.

Guide to Contracts also has some good articles.

Happy reading!

PS. Since you are an accountant I'm taking the unusual step of locking this thread. I'm sure that you'll appreciate this as a learning situation for you. We expect accountants to already know about this kind of stuff.

Feel free to come back once you have found out and understood why it's lower.