Is there a public sector inside IR35 calculator?

[eek]

the 13.8% deduction for employers NI is also wrong. Most people will be losing 14.3% due to the apprenticeship levy....

[northernladuk]

Oh a thread with numbers...

[VectraMan]

Nope. Subtract 13.8% (multiply by (1-0.138) = 0.862) gives the right answer. Dividing by 1.138 does not:

13.8% of £100 = £13.80, £100 - £13.80 = £86.20
Divide £100 by 1.138 = £87.87
Multiply £100 by 0.862 = £86.20.

Except you're doing it backwards. 13.8% is added onto your gross salary (in the permie meaning of salary), so you need to work out the gross salary that would have resulted in the salary+Employer NI being your contractor gross:

£86.20 + 13.8% = £98.09, not £100. Wrong!
£87.87 + 13.8% = £100. Phew.

[pscont]

Subtract 13.8% for employer's NI (divide by 1.138), then use a normal PAYE take home calculator.

This is probably the way to calculate it. However, at what point do you take EE and ER NIC out. Before or after applying income tax?
Surely a calculator for the most basic case - no pension, no expenses can be made.
And since it is PAYE your p45 will matter, so YTD taxes and income are to be put there.

[Hex]

Subtract 13.8% for employer's NI (divide by 1.138), then use a normal PAYE take home calculator.

Nope. Subtract 13.8% (multiply by (1-0.138) = 0.862) gives the right answer. Dividing by 1.138 does not:

13.8% of £100 = £13.80, £100 - £13.80 = £86.20
Divide £100 by 1.138 = £87.87
Multiply £100 by 0.862 = £86.20.

[VectraMan]

Subtract 13.8% for employer's NI (divide by 1.138), then use a normal PAYE take home calculator.

[eek]

Use an umbrella calculator, the only difference between legitimate umbrellas are their pension options, customer service and commission fees.

FTFY

Granted you could argue pension contribution options are customer service but its worth emphasising the biggest question you may (or may not) wish to ask an umbrella....

A lot only seem to do the legally required minimum when it comes to pensions - others offer a lot more.. In all cases however pensions can only be paid from everything after the national living wage has been paid and all taxes deducted...

[cojak]

Use an umbrella calculator, the only difference between legitimate umbrellas are their customer service and commission fees.

[mudskipper]

As far as I am aware IR35 is :

• Calculate total fees eg 235 * daily rate
• Now take off 5% (which will be tax free)
• Now take off pension contributions (tax free)
• Now take off allowable expenses (tax free)
• Take what is left and enter it into a net pay calculator as your gross income

For PS

- No 5% allowance
- If agent or PS body is operating payroll, you're unlikely to get your pension reductions tax free - you will need to reclaim on SATR, so won't get back NI
- There are very few allowable expenses - again these would most likely to be claimed back on SATR.

[Cirrus]

As far as I am aware IR35 is :

• Calculate total fees eg 235 * daily rate
• Now take off 5% (which will be tax free)
• Now take off pension contributions (tax free)
• Now take off allowable expenses (tax free)
• Take what is left and enter it into a net pay calculator as your gross income

[northernladuk]

Won't your accountant run the basic numbers for you? I would have thought it would be very difficult to create a calculator that is all things to everyone. There are so many complex scenarios aren't there?

[pscont]

Have you come across one?
Where you can put p45 details for pay to date and tax to date and inIR35 day rate and it gives you net take home per month/day/year.
Any suggestions?