Boomed 900,000

[Ignis Fatuus]

£400 a day is roughly £50k salary with the usual package, assuming you work close to the full year. Not a bad screw, but pretty much par for any competent technical or business expert with ten years under their belt these days.

I look at it the other way. I know what I need to live on, and how much it costs to do the gig. Add on the various taxes and that's the minimum rate. All else is bonus.

I agree that it's not bad but it's not off-the-wall as rewards for success.

As for working all year, I'm still tending to think as if I do, although it has only been true in 1 of the last 5 years. Seven months out of 12 is more like it. And all in other countries, so £2k/month expenses.

Of course YMMV. You may stay in work most of the time. You may feel able to take money from the company by means of dividends. You may find work nearer home, or be able to stay away rather than maintain a home in the UK and return to it every weekend. Then your calculation woiuld be different.

[d000hg]

£400 a day is roughly £50k salary with the usual package, assuming you work close to the full year.

It is? What are you getting in the permie package?

£50k gives you £36k take home. And on the basis you work say 44 full weeks, you have:

Gross: £+88k
FRS profit @2.6%: £+2300k
Accountancy: £-1300
Other fees (PCG, PI): £-1000

Leaves £88k... take 8k salary and pay 20% CT on £80k = £72k you take from the company

No personal tax on the first £42k then you pay about £8k on the rest, ending up with take-home of £64k, getting on for double your £50k salary take-home of £36k.

Obviously this is approximated and misses things like claiming mileage and expenses. The big thing you miss is a matched pension, however even as a Ltd you get some extra benefit from paying into your own pension (I don't know how those figures add up).

And because the contractor is only paying higher tax on everything above £42k, they can work a lot less and still get £42k take-home, which might be roughly what we value a £50k+package at?

[barrydidit]

Leaves £88k... take 8k salary and pay 20% CT on £80k = £72k you take from the company

Err...

Interestingly, I had a play with a permie pay calculator a while back, I seem to remember £42k takehome being the equivalent of £65k salary. Obv no other benefits in that, but I was quite happy.

[d000hg]

What? £8k + 80% of £80k = £72k.