Income calculation

[DaveB]

If you are with an umbrella, IR35 doesn't apply. Also, between Parasol and ContractorCalculator, which one is trying to sell you an umbrella service?

They all work to the same tax rules so all else being equal they can only give the same results. If you get different results, someone clearly isn't comparing like for like.

WMS. Plus, provided you do your homework and get your contract checked over there is no reason why you should be inside IR35 anyway. In the IR35 scenario it tends to be expenses that make the difference and some creative use of expenses claims can inflate your income considerably. Just because the brolly allows you to claim an expense does not mean HMRC will see it the same way. How many regular employers do you know who let you claim for lunch or breakfast at your normal place of employment? This is the standard HMRC will apply should they decide to take an interest, and it is your responsibility, not the brolly's, to show that everything you claimed was legitimate.

[SueEllen]

WMS. Plus, provided you do your homework and get your contract checked over there is no reason why you should be inside IR35 anyway. In the IR35 scenario it tends to be expenses that make the difference and some creative use of expenses claims can inflate your income considerably. Just because the brolly allows you to claim an expense does not mean HMRC will see it the same way. How many regular employers do you know who let you claim for lunch or breakfast at your normal place of employment? This is the standard HMRC will apply should they decide to take an interest, and it is your responsibility, not the brolly's, to show that everything you claimed was legitimate.

The "normal place" of employment for a contractor is normally their home. The reason you can claim travel expenses etc. is because a client site it's a temporary place of employment. If you were ever a permie who worked at different sites or went to off-site meetings you would know this.

[LisaContractorUmbrella]

Seriously, if your rate is over 200 a day no one should be working through a brollie. Its really that simple.

Brollies are for people of low rates or who are just starting contracting, dont know whether its for them so dont want to set up a limited co.

Just say 'No!' to brollies.

Actually BB that's simply not true - we have contractors working with us who earn way in excess of £450 per day but they don't want the hassle of running their own company for whatever reason - they understand the financial advantages but it's just not for them.

[kevinlam]

The parasol calculator's end result includes "holidays" of 41 days roughly. Does that mean in reality, the monthly payment will be higher than it says on the calculations?