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Even if the private sector IR35 reform is delayed again it probably won't change anything. Virtually all contracts I'm seeing for big org's have already made the switch to PAYE and they won't bother reversing it.
There were a select few big companies who deferred it, but the majority already have a PAYE system in place with PSL Umbrella co's and there would be no benefit for them to scrap it for 12 months.
I'm inside (*spits*) with an IB in Canary Wharf at £650 p/d, the take home is around £360; seems mental compared to the halcyon days of yore
Even if the private sector IR35 reform is delayed again it probably won't change anything. Virtually all contracts I'm seeing for big org's have already made the switch to PAYE and they won't bother reversing it.
There were a select few big companies who deferred it, but the majority already have a PAYE system in place with PSL Umbrella co's and there would be no benefit for them to scrap it for 12 months.
I'm inside (*spits*) with an IB in Canary Wharf at £650 p/d, the take home is around £360; seems mental compared to the halcyon days of yore
What?!
£650 p/d -> £360 p/d.
So basically they taking more than the NI and Apprentice Levy 14% in your PAYE / Umbrella solution
Your current net monthly income is £7,363
If you get caught by IR35, this decreases £1,249 (16%) to £6,113
Your total annual contracting fees are £143,000.
After your expenses of £3,000, your gross earnings are £140,000
Your current net monthly income after taxes is £7,363.
Does investment banking IT have a future at those daily contract rates?
Is the talent going to flee already?
You're better than that.
Does investment banking IT have a future at those daily contract rates?
Is the talent going to flee already?
You're better than that.
Judging by the number of "I'm desperate and will take anything" posts we've seen on here in the last 12 months, I'm sure IBs will have no problems recruiting contractors at rates significantly below £650. In fact, I've already seen plenty of evidence of IB dev roles at £450-500.
Last IB I worked for had plenty of Indian IT staff (devs, testers, PMs) at rates of £150-300 - and that was way before IR35 and COVID kicked in.
55% overall take home, is about right for inside IR35 at that rate.
Daylight robbery, and gets even worse the more you earn, you only get to keep about 47% on anything over 650 per day, they steal 53%. Due to the 45% rate + employers NI
55% overall take home, is about right for inside IR35 at that rate.
Daylight robbery, and gets even worse the more you earn, you only get to keep about 47% on anything over 650 per day, they steal 53%. Due to the 45% rate + employers NI
Except for the NI (which the employer is paying anyway) it's what an employee pays in tax.
And if you don't like it work less, take more holidays and throw more into a pension.
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