What are your clients doing with IR35 reform?

[mogga71]

No you don't. There are other benefits that add to the total package like pensions, holiday, sick, bonus and the like. It's hard enough to compare the two without taking such a simplistic approach. Means nothing those numbers.

Well it will mean absolutely everything to me when my current place of work ask me to go permie and ask me for a figure.

would indicate those figures are not miles off.

[JoJoGabor]

Well it will mean absolutely everything to me when my current place of work ask me to go permie and ask me for a figure.

would indicate those figures are not miles off.

Yeah certainly with my.mortgage I can't afford to go permie and drop my take home to such a level. So eitherninfind a high paying permie consulting job, an outside IR35 contract or I setup my own business with a few others. Oh and send 'er indoors out to work. Hard times in the first world

[cojak]

Well it will mean absolutely everything to me when my current place of work ask me to go permie and ask me for a figure.

Good luck with that - even I would undercut you and still be happy for less than that.

Really, there are an awful lot of contractors who are going to be benched while they find that 'golden' permie position and salary. If you haven't been looking for it you're already too late.

[northernladuk]

Well it will mean absolutely everything to me when my current place of work ask me to go permie and ask me for a figure.


would indicate those figures are not miles off.

Right. Unless you are super niche they will laugh you out the building. They might offer you a figure which overall costs them the same as 500 quid a day but they will have overheads. Permies cost employers much more than they actual pay the employee gets so you aren't going to get the 500 quid and then they suffer the extra expense. They might as well pay an inside contractor a little more.

And we've discussed the calculators in depth and they are wooly numbers at best.

[JohntheBike]

Well it will mean absolutely everything to me when my current place of work ask me to go permie and ask me for a figure.


would indicate those figures are not miles off.

are there any up to date figures available showing the comparison of taxes paid through an Ltd. v's taxed at source, for the same gross income? Since the introduction of the dividend tax, I guess the gap has closed. A quick assessment of my situation revealed that the difference is relatively small, mainly I guess because MyCo's income is not great. So, apart from the risks of retrospective investigation, my nett income would not reduce by the 30% or so that is generally accepted.

[BR14]

are there any up to date figures available showing the comparison of taxes paid through an Ltd. v's taxed at source, for the same gross income? Since the introduction of the dividend tax, I guess the gap has closed. A quick assessment of my situation revealed that the difference is relatively small, mainly I guess because MyCo's income is not great. So, apart from the risks of retrospective investigation, my nett income would not reduce by the 30% or so that is generally accepted.

WGAF about YOUR situation??
FFS.

[northernladuk]

are there any up to date figures available showing the comparison of taxes paid through an Ltd. v's taxed at source, for the same gross income? .

Doesn't the link he supplied do that for you? Problem is it is very situation dependant and really comparing apples and pears so any generic calculator is going to be guidelines at best.
If you want accuracy you are best asking your accountant to run the numbers for your particular circumstance.

[JohntheBike]

Doesn't the link he supplied do that for you? Problem is it is very situation dependant and really comparing apples and pears so any generic calculator is going to be guidelines at best.
If you want accuracy you are best asking your accountant to run the numbers for your particular circumstance.

Yes, as you quite rightly say, each individual's circumstances are unique. I have discussed my figures with the accountant's payroll assistant and she confirmed that the difference in taxes between what I pay now, based on last year's figures, v's what I would pay if caught by IR35 is quite minimal. So no where near the difference suggested by the ContractorCalculator online calculator, which may be out of date. However, whenever I see such a discrepancy, I then question the validity of my calculations.

However, all I'm trying to do is identify as many variables as possible prior to April 2020, so that I'm not caught out in any way by not considering a particular issue.

[northernladuk]

Yes, as you quite rightly say, each individual's circumstances are unique. I have discussed my figures with the accountant's payroll assistant and she confirmed that the difference in taxes between what I pay now, based on last year's figures, v's what I would pay if caught by IR35 is quite minimal. So no where near the difference suggested by the ContractorCalculator online calculator, which may be out of date. However, whenever I see such a discrepancy, I then question the validity of my calculations.

Nothing wrong with that, particularly when the numbers don't show what you'd generally expect (the Outside vs inside being minimal). You must have quite a different set up to most of us, or your income in generally lower as I think you've already indicated.

Not sure if it's an area you are bothered about now but look in to the pension options. Very limited with most brollies/PAYE setups but if you can find a brolly like Contractor Umbrella who used to allow unlimited pension payments (to the max allowed of course) you could put your entire inside income in to the pension and pay no tax whilst winding down the warchest in the limited which would seriously change the numbers away from the general model in your favour.

Rather oddly it might actually be more tax efficient for you to go inside for the last few years of your career. Obviously that's a complete guess so run the numbers. Could be interesting.

[JohntheBike]

Nothing wrong with that, particularly when the numbers don't show what you'd generally expect (the Outside vs inside being minimal). You must have quite a different set up to most of us, or your income in generally lower as I think you've already indicated.

Not sure if it's an area you are bothered about now but look in to the pension options. Very limited with most brollies/PAYE setups but if you can find a brolly like Contractor Umbrella who used to allow unlimited pension payments (to the max allowed of course) you could put your entire inside income in to the pension and pay no tax whilst winding down the warchest in the limited which would seriously change the numbers away from the general model in your favour.

Rather oddly it might actually be more tax efficient for you to go inside for the last few years of your career. Obviously that's a complete guess so run the numbers. Could be interesting.

yes, you are correct, it does look like that going inside could be beneficial to me, apart from the retrospective investigation issue, for the short period that I hope to be contracting for, especially as my income is low.