...so not an easy thing to do judging by previous discussion. Many variables. I am trying to weigh up £670pd outside (caught by 24 month rule) against £800pd inside. Both can be considered to have equal expenses working away from home base. My initial feeling is that the £800 is not enough but I need to go crunch some numbers. Anyone else have any feedback from a similar decision they've had to make?
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Inside/Outside IR35 comparison
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Originally posted by Gomez View Post...so not an easy thing to do judging by previous discussion. Many variables. I am trying to weigh up £670pd outside (caught by 24 month rule) against £800pd inside. Both can be considered to have equal expenses working away from home base. My initial feeling is that the £800 is not enough but I need to go crunch some numbers. Anyone else have any feedback from a similar decision they've had to make?
However - if truly 'outside' - you may prefer the autonomy, lack of being 'part of the company', lack of obligation and so on that comes with being 'Outside'
If you think that the inside gig gives you all that too you might want it. If not...⭐️ Gold Star Contractor -
So many variables. What are average expenses? If your expenses are £5K a month you are going to have a lot of taxes with the outside gig, too, so the benefit of being outside is lessened. If they are £500 / month, not so much.
How much pension contribution are you making? Interested in increasing it?
How much money (dividends and salary) do you need to take out? If you are going into higher rate on divs, being outside is worth less.
And so on....
Without knowing all those variables, you can't really compare the two.Comment
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you means the 24 month expense rule?
Originally posted by Gomez View Post...so not an easy thing to do judging by previous discussion. Many variables. I am trying to weigh up £670pd outside (caught by 24 month rule) against £800pd inside. Both can be considered to have equal expenses working away from home base. My initial feeling is that the £800 is not enough but I need to go crunch some numbers. Anyone else have any feedback from a similar decision they've had to make?
Just ask your client to settle your hotel/travel bills directly for a reduction in your daily rate - job doneComment
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Inside IR35 is no expenses of course. But if you've blown the 24 month limit that doesn't really matter.
But the main (and usually forgotten) benefit of outside gigs is the ability to mange your income far more effectively than simply dumping 95% of your gross in your personal account less tax. Dividends are trivial, but non-subsistence expenses, war-chest building, far better pensions savings, cheaper life insurance and several other things are not to be ignored.Blog? What blog...?Comment
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Bare in mind HMRC have said there is a possibility that if you work Inside, they may want to chat to you about previous contracts to see if they can squeeze some more tax out of you.
qhLast edited by quackhandle; 11 April 2018, 13:42.He had a negative bluety on a quackhandle and was quadraspazzed on a lifeglug.
I look forward to your all knowing and likely sarcastic and unhelpful reply.
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Originally posted by quackhandle View PostBare in mind HMRC have said there is a possibility that if you work Inside, they may want to chat to you about previous contracts to see if they can squeeze some more tax out of you.
qhComment
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Originally posted by SeanT View PostTake the outside unless you're putting most of it in a pensionComment
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