Reply to: How can I get a breakdown how much I will earn month / annual based on a daily rate?

[HealthyProtein]

Hi there,

Thank you for your useful replies

I am new to contracting so wasn't sure how to work out my finances. Previously I have always been in full-time employment.

[Scratch It]

I base my earnings on how much my missus will let me have each week...

Too. Damn. Real.

[Invisiblehand]

I'd just phone up a contractor accountancy and ask them to put one together for you.

[northernladuk]

A good on line calculator can be found at : https://www.uktaxcalculators.co.uk

Very easy to use if you are just looking for a check on PAYE deductions etc.

If you are looking for a quote through an umbrella company then we would be happy to give you a pay illustration.

Umbrella Contractor PAYE Pay Illustration

Is 70229 Management consultancy activities other than financial management - the right SIC code for an umbrella?

[SeanT]

The Nixon Williams one does "second shareholder" - http://www.nixonwilliams.com/free-re...pay-calculator - but my hand rolled excel spreadsheet (gettingpaid.xlsx ) is better

[Beacon Umbrella]

£8164...

A good on line calculator can be found at : https://www.uktaxcalculators.co.uk

Very easy to use if you are just looking for a check on PAYE deductions etc.

[TheFaQQer]

Or employ someone...

Or have two directors so you can claim the NI rebate.

[SeanT]

Defo - unless you fancy paying more NI out of the goodness of your heart

Or employ someone...

[CatOnMat]

£8164...

Defo - unless you fancy paying more NI out of the goodness of your heart

[SeanT]

You'll earn £11,500 won't you?

£8164...

[Lost It]

I base my earnings on how much my missus will let me have each week...

[northernladuk]

There is also the aspect that you will only earn for the duration of the contract you are in which is likely to be less than a year. Any calculations above and beyond that are just wishful thinking so doesn't really matter how accurate the calculator is. If you just want to see how rich you will be in 1, 5 10 years then any calculator will do. Reality will be so far from the theory it's not worth worrying about the accuracy of the calculator.

[Darren at Fox-Bartfield]

Tax Planning

The online tax calculators are a good indicator however they go by the assumption that you'll take out every penny within the year. The figures for the umbrella and inside IR35 PSC are likely to be a fair reflection but for those outside IR35 and using a PSC then there's a lot more scope for tax planning depending on your cash requirement.

[malvolio]

You're looking at this backwards. You need to work out the minimum you need to earn to support yourself and any necessary outgoings as an annual net income then use that to baseline your minimum acceptable rate. Anything above that is a bonus. As for the rate itself, that's simple: as much as you can sell yourself to the agency for above your known minimum.

We cannot answer your original question, there are far too many variables. Unless, of course, you want to publish your bank statements annotated by type of outgoings, personal allowance, any tax credits, any other incomes and anything else that may impact your earnings. So perhaps not...

[northernladuk]

You'll earn £11,500 won't you? What your income will be will depend a multitude of factors so you'll only get an approximation from a calculator at best.

You could use SJD's spreadsheet and plug the numbers in to that if you want a good figure I guess.

Or you could ask your accountant to provide some figures for you.