Contract Rate calculator (Take home)

[rurffy]

Just wondering if anyone knows a good contractor calculator . i would like to know how much take home (I am a limited company with VAT registered)
What do you think will be my take home if for example i earn £200/day or £180/day

P.S
I have done the obvious, google different contractor calculators but they have different figures - i need to know if anyone has any accurant calc

Thanks guys

[malvolio]

Just wondering if anyone knows a good contractor calculator . i would like to know how much take home (I am a limited company with VAT registered)
What do you think will be my take home if for example i earn £200/day or £180/day

P.S
I have done the obvious, google different contractor calculators but they have different figures - i need to know if anyone has any accurant calc

Thanks guys

They all make different assumptions on tax codes and expenses, both of which vary from one guy to the next, hence the different answers.

As a rule of thumb, assume you'll get 70% of your gross - but the only way to get a real answer is to get all the numbers and do your own calculations based on what you know.

[rurffy]

They all make different assumptions on tax codes and expenses, both of which vary from one guy to the next, hence the different answers.

As a rule of thumb, assume you'll get 70% of your gross - but the only way to get a real answer is to get all the numbers and do your own calculations based on what you know.

Thanks for the reply ,

So basically, do you have any calc to suggest to me?

If i say 70% right ? My expenses will obviously increase this number right?

Thanks..

[Antman]

Expenses and take home are different concepts. The only effect of expenses on your take home is that it reduces your exposure to corp. tax.

It's worth mentioning that only stuff wholly used as part of doing your doings can be claimed as an expense.

[TheFaQQer]

I am a limited company with VAT registered

No you aren't. You may work for one, but you aren't one.

[rurffy]

No you aren't. You may work for one, but you aren't one.

But you get my point anyways...

[northernladuk]

You have tried googling this haven't you? Might come up with a site called contractorcalculator somewhere in the returned list......

[LisaContractorUmbrella]

Thanks for the reply ,

So basically, do you have any calc to suggest to me?

If i say 70% right ? My expenses will obviously increase this number right?

Thanks..

Will your working practises put you inside or outside of IR35? What is your tax code? Are you working 5 days per week, 48 weeks per year? What costs do you incur that are wholly and exclusively as a result of the contract?

You would need to answer all these questions, and possibly others, in order to be able to get an accurate calculation

[Ignis Fatuus]

Thanks for the reply ,

So basically, do you have any calc to suggest to me?

If i say 70% right ? My expenses will obviously increase this number right?

Thanks..

If you have no expenses, use the rule of thumb figure of 70%.

This means take-home / income = 70%.

If you have expenses, that will mean that (take-home + expenses) / income > 70%
but take-home / income < 70%.

So it depends which figure you are looking for, take-home, or take-home + expenses. Personally I am only interested in take-home.



Example:
1. income 100, taxes etc 30, take-home 70.
result = 70%
2. income 100, expenses 10, taxes etc 27, so take-home 63.
real result = 63%.
total not paid to taxes etc = 73%, but you don't get to spend 10 of that on yourself because you did pay it in expenses.


PS:
3. income 100, expenses 0 but you claim expenses 10, taxes etc 27....
result: 4 years for fraud.

[rurffy]

If you have no expenses, use the rule of thumb figure of 70%.

This means take-home / income = 70%.

If you have expenses, that will mean that (take-home + expenses) / income > 70%
but take-home / income < 70%.

So it depends which figure you are looking for, take-home, or take-home + expenses. Personally I am only interested in take-home.



Example:
1. income 100, taxes etc 30, take-home 70.
result = 70%
2. income 100, expenses 10, taxes etc 27, so take-home 63.
real result = 63%.
total not paid to taxes etc = 73%, but you don't get to spend 10 of that on yourself because you did pay it in expenses.


PS:
3. income 100, expenses 0 but you claim expenses 10, taxes etc 27....
result: 4 years for fraud.

hmm Detailed explanation . Thanks for that ..