Originally posted by Fraidycat
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Insider ir35 - is uk a tax hell now?
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Originally posted by Fraidycat View PostI just realised i forget to include NICs.
So its 14% employers NICs, 2% employee NICs and 60% income tax for inside IR35 salary between 100K and 120K.
Marginal 67.5% tax rate 32.5% take home.
Personally if I was coming towards the end of the tax year and i was close to entering that tax band (after putting 40K into my pension). I would just take the rest of the tax year off.
But i can see why some people would carry on as normal, 32.5% take home is still better than nothing!
And even someone as up their own arse as you doesn't turn money down so I doubt you would anyway.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View Post
You know you are starting to sound like a bit of an arrogant a hole? Taking time off because you can't be bothered to earn it. Why not get off your lofty height and just give advice to normal people that have to work all year rather than tell us what you'd do because you can?
And even someone as up their own arse as you doesn't turn money down so I doubt you would anyway.
But beyond that if you are caught by ir35 what advice can anyone actually give regarding tax beyond:-
1) pick a trustworthy umbrella
2) maximise your pension contributionsmerely at clientco for the entertainmentComment
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So with todays NI increases it looks like a 2.5% increase for those caught by IR35?
1.25% employees NI and 1.25% employers NICs
As if inside IR35 contractors weren't taxed enough tax already.
We used to estimate around 55 or 54% take home, now its getting even closer to 50%.
I guess it now makes calculating take home pay easy, £800 a day inside IR35 expect to take home around £400 a day
Any more increases and inside IR35 contractors really are in tax hell: where effective overall tax rate >50%. (The marginal tax rate already is >50%).Last edited by Fraidycat; 7 September 2021, 13:34.Comment
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