Hi I'm new to contracting / trying to break into contracting and am just trying to get an accurate picture of how much I'd potentially earn as opposed to a perm role. Pretty much everyone I talk to says to initially go with an Umbrella company so assume thats I'm talking about here...
As a perm I was on 35000/year and was getting checks for roughly 2100 in the hand. I had my calculator out and its roughly 134 quid gross per day.
I've been using the calculators on this website and plugging in say 200/day (25/hr at 8 hours a day), 52 weeks worked (since perm you could work 52 weeks and forgo holidays). Pretty simple maths tells you the gross for that is almost 20k more at 52000/year. Forgetting about things like umbrella fee and tax claims at the moment the calculators are saying thats only 2,557.92 in take home pay. Not that 2500quid a month is to be laughed at but the increase struck me as rather low compared to raw increase in daily rate, more than 65 pounds per day!
I know I'm glossing over several things like holidays/sick leave and tax claims etc etc but I was just wondering if contractors end up paying more in tax?
For example, perhaps, what perm salary in real life terms is 200/day comparable to?
Perhaps not being from the UK I'm missing something like a tiered tax system?
As a perm I was on 35000/year and was getting checks for roughly 2100 in the hand. I had my calculator out and its roughly 134 quid gross per day.
I've been using the calculators on this website and plugging in say 200/day (25/hr at 8 hours a day), 52 weeks worked (since perm you could work 52 weeks and forgo holidays). Pretty simple maths tells you the gross for that is almost 20k more at 52000/year. Forgetting about things like umbrella fee and tax claims at the moment the calculators are saying thats only 2,557.92 in take home pay. Not that 2500quid a month is to be laughed at but the increase struck me as rather low compared to raw increase in daily rate, more than 65 pounds per day!
I know I'm glossing over several things like holidays/sick leave and tax claims etc etc but I was just wondering if contractors end up paying more in tax?
For example, perhaps, what perm salary in real life terms is 200/day comparable to?
Perhaps not being from the UK I'm missing something like a tiered tax system?
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