I was wondering with my new contract, in case of getting 700 pounds, using umbrella calculator I have discovered that I will keep approx 45% of my salary with daily rate of 700.... Does it mean that UK is a tax hell now?
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Insider ir35 - is uk a tax hell now?
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Originally posted by shabak View PostI was wondering with my new contract, in case of getting 700 pounds, using umbrella calculator I have discovered that I will keep approx 45% of my salary with daily rate of 700.... Does it mean that UK is a tax hell now?
As unless you are repaying a student loan (which will be rapidly being paid off if you are earning that sort of figure) you should be getting 55% or so.
Or more if you put a lot into a SIPP pension scheme via salary sacrifice.merely at clientco for the entertainment -
You mean it's a tax hell for people to pay the tax they should have been paying on their earnings because they always were inside IR35 but had the luxury of a loop hole that meant they could avoid it?Comment
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Originally posted by shabak View PostI was wondering with my new contract, in case of getting 700 pounds, using umbrella calculator I have discovered that I will keep approx 45% of my salary with daily rate of 700.... Does it mean that UK is a tax hell now?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View Post
Yep. And remember no expenses as well so a tax hell with no benefits as well.merely at clientco for the entertainmentComment
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The OP is on around £75k a year tax paid, hardly penury. But yes, it ought to be closer to £100k
Then again, if you take £750 a day the old fashioned way it would be very roughly £140k a year after tax, so yes there is a big drop. But perhaps a sense of reality ought to prevail. If you want the bigger numbers, get yourself outside IR35.Blog? What blog...?Comment
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Hmm, I used calculator on this page: https://www.paystream.co.uk/calculat...or-calculator/
And what do you think from experience? Are they accurate?Comment
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Originally posted by shabak View PostHmm, I used calculator on this page: https://www.paystream.co.uk/calculat...or-calculator/
And what do you think from experience? Are they accurate?merely at clientco for the entertainmentComment
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Originally posted by shabak View PostHmm, I used calculator on this page: https://www.paystream.co.uk/calculat...or-calculator/
And what do you think from experience? Are they accurate?
Why don't you ask your umbrella to explain and perhaps justify the numbers. After all, that's what you're paying them for.Blog? What blog...?Comment
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Originally posted by eek View Post
£702 a day (can't get more accurate on that system) gives me £8455 a month - so where are you getting that 45% figure from as that to me is the 55-60% I would expect.
https://www.contractorcalculator.co....sic&Host=LOCAL
And for 700 per day it gives:- Your gross annual revenue is £154,000
- Deducting your expenses of � 7,700 results in a profit of � 135,300
- Total taxes are �67,512, which is 43% of your company revenue
- Your net annual income is � 77,257, and net monthly income is � 6,438
- To earn the same via permanent employment would require a salary of £126,895.
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