Please advice. Struggling

[simes]

I highly doubt that you are a contractor, no disrespect. Every contractor knows that up to £300 a day does not translate directly to # of working days in a year x max day rate. This is something extremely basic to understand.

Then on top of that understanding that inside IR35 means paying tax pretty much like a PAYE - which would mean with his experience as a Manager, his net earnings would be similar to an employee. Very simple concept to understand for a contractor.

Sorry, £72k pa. Yes indeed there were some assumptions to be made. Such as ~20 working days per month and essentially 20 days off. So, if one earns £300/day for 12 months, then absolutely yes, £6k/month x 12 months equals £72k. This still leaves 20 days off due to Bank Holiday and whatever else.

I was assuming outside IR35. Why are you assuming inside? If one is working through an Umbrella then there is no need to know how to run a business as essentially you are an employee. My understanding does extend that far. You can't have it both ways.

You are definitely not a contractor and not a native English speaker.

I see. Perhaps my loquacity isn't what it was...

[northernladuk]

I see. Perhaps my loquacity isn't what it was...

Still the usual crap through.

[quackhandle]

"I'm thinking of taking a break from business and getting into contracting for a year or so"

Running a business isn't a hobby.

qh

[Contractor101101]

Sorry, £72k pa. Yes indeed there were some assumptions to be made. Such as ~20 working days per month and essentially 20 days off. So, if one earns £300/day for 12 months, then absolutely yes, £6k/month x 12 months equals £72k. This still leaves 20 days off due to Bank Holiday and whatever else.

I was assuming outside IR35. Why are you assuming inside? If one is working through an Umbrella then there is no need to know how to run a business as essentially you are an employee. My understanding does extend that far. You can't have it both ways.

Ok, one last time for the OP's benefit. This is like talking to a child but the OP doesn't know anything about contracting.

So a contractor would know that currently a significant number of contracts (a significant % of contracts) are initially for 6 months. Even if they are for a longer period, it cannot be assumed ever that they will either last the full term or will be renewed.

Which means when I'm stating that the OP would be lucky to earn £300 a day, realistically that probably means £250 and realistically would look at 6 months at most. Especially as a first contract.

Which is nowhere near the equivalent of £72,000 pa. Following me so far?

If we are suggesting inside IR35 then contracting is mute since he would be paying the equivalent of PAYE tax. Meaning that - subject to permanent pay in the travel sector and his management experience - most likely he wouldn't be worse off going permanent.

He would also not have to stress about learning about how contracting works.

If he went down the Umbrella route - which would be advisable as a first time contractor as he probably doesn't know about liability insurance, IR35 insurance, etc - the above argument is even more valid.

You are advocating umbrella - which completely kills the argument that he would be having the tax advantages because these advantages are associated with being outside IR35 AND having his own Ltd. In fact! He would be worse off than in a permanent role because he would also pay employer NI and umbrella fees.

And that's it. You have no idea what you are talking about and you give bad advice.

[simes]

And that's it. You have no idea what you are talking about and you give bad advice.

Perhaps if I were to use my first language, things would be clearer.

At the end of the day, let's see what the OP has to say. If he ever returns.

[psychocandy]

OP sounds like my 15 year old son who says he wants to be a YouTube blogger when he grows up and earn $1 miillion a year.

I tell him "if it were that simple why isn't everyone doing it".

Similarly, a lot of my family think I'm "lucky" because I earn loads by just sitting in an office all day. (They have no idea what I earn but guess). As you all know, there is a bit more to it than that.....

[DeludedKitten]

If we are suggesting inside IR35 then contracting is mute

Sometimes, I wish some contractors would be mute

[simes]

Sometimes, I wish some contractors would be mute

Careful. He is a practised wordsmith who helpfully points out and encourages betterment in others' language deficiencies...

[DeludedKitten]

Careful. He is a practised wordsmith who helpfully points out and encourages betterment in others' language deficiencies...

And yet 28 posts into the thread nobody has commented on the title being incorrect

[simes]

I think the OP has disappeared. And anyway, bearing in mind that not just the title, but the entire post is delightfully carefree of grammar and structure, his English may indeed be a second language.

But since he has to date not imposed his attitude and omni-present, know-it-all nature on the world, live and let live.