Rule of thumb uplift from outside IR35 to inside IR35 day rate?

[fiisch]

Thanks for posting - was about to search for similar threads as currently mulling over this exact question, albeit on far more modest rates.

Current (outside) contract is looking uncertain (usual project pause and replanning of portfolio after senior change hire), and in discussions over a couple of inside roles. The rule of thumb offered by agents to me (who are trying to sell an Inside contract) is that there is a circa 20-25% uplift.

As has been posted, there are too many variables to provide an exact formula (which the BA in me lusts for).

If you have >1 shareholder in your ltd, then obviously the uplift is higher to give you the same net income.

What I am finding is different inside IR35 calculators are giving me different results - is there a trusted/preferred calculator people use to give an indicative take-home for inside contracts?

[ladymuck]

Different calculators shouldn't give different results if the inputs are exactly the same. Check what assumptions are being made on each. The only variance should be in the fee they charge. If there is a significant discrepancy, then I would call them up and ask for a detailed illustration and explanation of all the calculations. Make them earn your custom!

When checking calculators, I scrub out all optional extras and start with just the assignment rate and the umbrella fee. Then I start adding in things that complicate matters.

I know there's a lot of trust for Clarity and, having had them do some illustrations for me a while back when I thought I might be going inside, I was happy with the explanations received, etc.

[fatJock]

I know there's a lot of trust for Clarity and, having had them do some illustrations for me a while back when I thought I might be going inside, I was happy with the explanations received, etc.

+1 for Clarity who are who I use when I am inside. 20-25% is the uplift you'll need in my factual experience.