FTC - Equivalent Day Rate

[MagicMovies]

Hello!

What would be the equivalent day rate for a FTC of £100k for 12 months. There is no umbrella company and it is directly with the end client.

I have searched the forums and found the following (new contractor here, less than 1 year - so apologies for all the silly questions!)

1. I found the following link but that is a post from 2008. So, has anything significantly changed since then which would drastically change the result of calculations from £400 per day rate?
2. I do not have the exact contract yet, but initial talks with the HR person has confirmed that apart from the PAYE tax and NI contribution, there is going to be no other deductions (and will be credited to my personal account and not business account). Are you aware of any other deductions that is typically part of an FTC?
3. A pay of £100k for 12 months works out as £5,553.33 per month (take home) based on the calculator, so if there is no other deductions, can I assume that I would be taking home the entire net sum of £5553.33 every month?

Thanks for your time and inputs!

[northernladuk]

Why do you want to know?

[MagicMovies]

Why do you want to know?

Thanks for the prompt reply! Well, it is just to know if the rate I am signing is in line with what a day rate would be or should I be negotiating for a higher FTC salary or should I be looking for a standard contracts instead of FTC.

[ladymuck]

Rather than get hung up on a day rate vs FTC salary comparison, why not look at the take home pay and confirm you can cover your bills?

Or, do you have a surfeit of offers and are trying to see which option will net you the most?

[MagicMovies]

Rather than get hung up on a day rate vs FTC salary comparison, why not look at the take home pay and confirm you can cover your bills?

Or, do you have a surfeit of offers and are trying to see which option will net you the most?

Thanks for the reply! No, unfortunately, I do not have a surfeit of offers.

It is to calculate the take home pay (question 2 and 3) so that I can cover the bills.

[ladymuck]

Thanks for the reply! No, unfortunately, I do not have a surfeit of offers.

It is to calculate the take home pay (question 2 and 3) so that I can cover the bills.

A simple salary calculator will tell you the take home pay. No need to over analyse it. Your pay will be subject to PAYE and NIC.

The offer will tell you what pension contribution the company will deduct and you can choose to opt out of that if you have your own scheme you'd rather pay into (although less of a tax break from net salary).

[malvolio]

Thanks for the reply! No, unfortunately, I do not have a surfeit of offers.

It is to calculate the take home pay (question 2 and 3) so that I can cover the bills.

If you can't do that on a £100k salary you maybe need to look at other factors.

FWIW you will keep roughly 55%-60% net after taxes on a salaried position. You can't compare it to day rate without a lot of fiddling; the usual rough comparison would put it at about £800 a day but that is pretty meaningless without knowing all your details.

And of course there's not umbrella, it a full time role with a fixed duration.

[MagicMovies]

If you can't do that on a £100k salary you maybe need to look at other factors.

FWIW you will keep roughly 55%-60% net after taxes on a salaried position. You can't compare it to day rate without a lot of fiddling; the usual rough comparison would put it at about £800 a day but that is pretty meaningless without knowing all your details.

And of course there's not umbrella, it a full time role with a fixed duration.

Thanks!

[MagicMovies]

A simple salary calculator will tell you the take home pay. No need to over analyse it. Your pay will be subject to PAYE and NIC.

The offer will tell you what pension contribution the company will deduct and you can choose to opt out of that if you have your own scheme you'd rather pay into (although less of a tax break from net salary).

Thanks! The HR person also said exactly the same - i.e., the pay will be subject to PAYE and NIC. So, the salarycalculator.co.uk link should give me all the necessary details for me.

Also, I had not thought of the pension contribution - so thanks for pointing that out.

[jayn200]

If you can't do that on a £100k salary you maybe need to look at other factors.

FWIW you will keep roughly 55%-60% net after taxes on a salaried position. You can't compare it to day rate without a lot of fiddling; the usual rough comparison would put it at about £800 a day but that is pretty meaningless without knowing all your details.

And of course there's not umbrella, it a full time role with a fixed duration.

Can you please justify the £800 day rate vs 100k ftc?

Obviously it depends on what you're comparing it to from a day rate perspective.

An inside ir35 contract working 200 days a year would Be £565 day rate.

That is the highest day rate you can make a logical comparison too.

A more realistic one would be £505 which is 225 days worked because that's what approximately you'll do on a 1 year ftc + employer nic. Guess you could add £5 for umbrella fees but still that's £510.

If you compared it to outside ir35 and looked at take home then it would be quite low, probably somewhere around that £400 mark OP mentioned but I am too lazy to calculate that.

Anyway point is your £800 day rate comparison is absolute garbage. Even if the FTC pays pension contribution it will likely just be 3% so even then that's only gonna add another 15-20 onto the day rate.