Insider ir35 - is uk a tax hell now?

[eek]

So let's look at the first sum there

£154,000 - £7,700 = £135,300

Nope the actual value is £146,300 so Dave Chaplin is up to his usual tricks with a calculator that is doing something undocumented for reasons I can't be arsed to deceiver.

And you don't get expenses for Inside IR35 contracts (some umbrellas offer it but I'm dubious about those as it's a nice profit centre for the umbrella once you understand how that type of scheme really works).

[northernladuk]

And you don't get expenses for Inside IR35 contracts

I said that! I said that! I got something right at last

[jamesbrown]

Nope the actual value is £146,300 so Dave Chaplin is up to his usual tricks with a calculator that is doing something undocumented for reasons I can't be arsed to deceiver.

Apparently, £8k salary and £3k "legitimate section 98 expenses".

https://www.contractorcalculator.co....ctorCalculator

[eek]

To add as it's worth settling this once and for all

£154,000 in assignment fees over the year (220 days at £700 a day) with an umbrella fee of £95 a month and a typical 1257L tax code, NI code A so under 66 years old..

£81,865.82 in pocket without any pension contribution (53.16%) = 46.84% lost in tax and umbrella costs.

or
£66,596.50 (43.24%) in pocket with £40,000 (25.97%) paid into your pension = 30.79% lost in tax and umbrella costs.

Calculator - my company's own as used to validate a whole set of other PAYE providers so I know it's right.

[eek]

I said that! I said that! I got something right at last

Well some umbrellas do offer "expenses" if you are outside SDC, but I'm expecting HMRC to have a close look at the umbrellas that offer such things especially as a number of FCSA ones have followed Advanced and started offering similar expenses.

[ladymuck]

Well some umbrellas do offer "expenses" if you are outside SDC, but I'm expecting HMRC to have a close look at the umbrellas that offer such things especially as a number of FCSA ones have followed Advanced and started offering similar expenses.

You just can't let him have a tiny spark of happiness, can you?

[northernladuk]

Well some umbrellas do offer "expenses" if you are outside SDC, but I'm expecting HMRC to have a close look at the umbrellas that offer such things especially as a number of FCSA ones have followed Advanced and started offering similar expenses.

F**k!

[uk contractor]

45% sounds about right for £700 a day roles. The days of mega rates are long gone for 99.9% of the IT contractor population!!

[eek]

45% sounds about right for £700 a day roles. The days of mega rates are long gone for 99.9% of the IT contractor population!!

Having shown above that your take home will be between 53% (no pension) and 69% (max pension) where are you getting the 45% figure from

[Fraidycat]

45% sounds about right for £700 a day roles. The days of mega rates are long gone for 99.9% of the IT contractor population!!

45% is percentage of tax you pay, not your take home. The take home is around 55%.