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Previously on "New take home calculator"

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  • tom at seamless
    replied
    Originally posted by sojan View Post
    I liked it. Few suggestions

    - May be a toggle switch for Inside/Outside IR35 and calculate accordingly
    - a Would be equivalent Permie salary just to do a heads-up comparison (towards the end).
    Many thanks.

    To allow for the fact that people may have both inside and outside income in the same year we have put separate income categories for each, but I can see how it would be useful to quickly switch the income from one to the other without having to input it again. I'll have a think about that.

    One really useful thing we offer (I hope) is that having got the take home for outside income, you can then click on that take home figure and have the calculator reverse calculate the IR35 sales (public or private) required to achieve that home home. If you then click into the income field you can see the equivalent day/hourly rate and can even get it to add back on the employer deductions for NI and apprenticeship levy to see what some agencies refer to as the 'assignment rate'.

    - The constraints of Total income < sum of (salary + dividend + expenses) may not be correct in all cases. May be default it to not-constraint?
    Do you mean that it should be possible to have loss? If so, then if the salary and dividends figures are set to specific amounts then it will maintain those even if that results in a loss.

    Out of curiosity, which software did you do this? Angular/node/React etc..?
    Vue.js for the frontend with Laravel framework for the backend

    Cheers

    Leave a comment:


  • sojan
    replied
    Originally posted by tom at seamless View Post
    Hey.

    Probably not the best timing I know, but I have put together a take home calculator so if anyone finds themselves with some free time I'd really appreciate some feedback.

    https://seamless.tax/contractor-tax-calculator

    It's pretty flexible in terms of letting you vary the inputs, and caters for both outside and inside IR35 (private and public sector) contracts. All the tax calculations can be drilled down on to see on what basis they are calculated - so let me know if I've got anything wrong!

    Many thanks
    Tom
    I liked it. Few suggestions

    - May be a toggle switch for Inside/Outside IR35 and calculate accordingly
    - a Would be equivalent Permie salary just to do a heads-up comparison (towards the end).
    - The constraints of Total income < sum of (salary + dividend + expenses) may not be correct in all cases. May be default it to not-constraint?

    Out of curiosity, which software did you do this? Angular/node/React etc..?

    Leave a comment:


  • elsergiovolador
    replied
    There is a bug. If you change the tax year, it doesn't retain your settings but resets the sliders.

    Leave a comment:


  • tom at seamless
    replied
    Some updates...

    Thanks again for taking the time to check this out and share your thoughts, it has been really useful.

    We've made a few changes over the last couple weeks off the back of your feedback:
    • Income slider now goes to 200k
    • When income reaches a level that triggers VAT it prompts to choose the scheme
    • If you want to ignore VAT completely then you can select 'Not registered' and enable the switch to stop it from calculating VAT over the threshold
    • Salary and dividend amounts can now be fixed at a specific amount, which has made the 'Recalculate drawings' switch redundant. You do this by clicking into the input field(s)
    • Dividends can be limited to tax free, basic rate, higher rate, etc with a warning if you manually change them to an amount that exceeds that level

    https://seamless.tax/contractor-tax-calculator

    I'm now looking at bringing some of the additional director/employee/shareholder options from the Xero connected app into this calculator so will keep you updated when that's available.

    Leave a comment:


  • Lance
    replied
    Originally posted by northernladuk View Post
    PABKAC
    Quite possibly. Isn’t that the point of a beta though?

    Leave a comment:


  • elsergiovolador
    replied
    Originally posted by tom at seamless View Post
    Hi. For public sector IR35 contracts (and private sector for everything other than small company clients next year) there are two options: umbrella or deemed payment. The calculator is modelling the deemed payment where invoice income, salary and any other expenses still gets recorded through the company, but the PAYE and NI on that salary is deducted at source by the fee payer.

    Keeping the ltd open and running deemed payment is not a particularly common choice where the only contract the PSC has is public IR35 (and is sometimes not supported by the end client) but the calculator helps understand and compare the impact of doing so against outside/private contracts - and even alongside outside/private contracts if you want to do so. The results of the calculation also won’t be a million miles away from what you’d get from an umbrella, you just need to account for the umbrella fee (rather than an accountant’s fee) in the sales edit page.

    The calculator also models things that the at source deduction won’t account for, e.g. student loan deductions, and the fact that although as you quite rightly say there’s no 5% expense allowance, a company running a deemed payment does still have admin expenses and therefore can’t usually withdraw the whole amount that they have paid deductions against.

    The private sector calculations do indeed take account of the 5% general admin allowance. If you enter private IR35 sales then the calculator will automatically do the deemed payment calculation and allocate it as salary (you can click on the deemed payment figure to see the calculation).

    Cheers.
    Thank you for explanation! I understand public sector inside contract you cannot run company expenses against the payment as that is already your (employee) money after tax and if it is paid as taxed dividend you don't even need to put it on your self assessment. You can of course make a loan to your company to cover running expenses but that is likely a whole lot of mess. It's probably better to ask accountant for such arrangements.

    Leave a comment:


  • tom at seamless
    replied
    Originally posted by elsergiovolador View Post
    Don't want to rain...

    But why inside IR35 income has anything to do with your company in your calculator? If you are inside in public sector then you are effectively a temp employee of your client or umbrella (without rights) and the money you receive is your salary and has nothing to do with your company books.

    In private sector I think there is 5% relief that you can use towards running costs of your company.
    Hi. For public sector IR35 contracts (and private sector for everything other than small company clients next year) there are two options: umbrella or deemed payment. The calculator is modelling the deemed payment where invoice income, salary and any other expenses still gets recorded through the company, but the PAYE and NI on that salary is deducted at source by the fee payer.

    Keeping the ltd open and running deemed payment is not a particularly common choice where the only contract the PSC has is public IR35 (and is sometimes not supported by the end client) but the calculator helps understand and compare the impact of doing so against outside/private contracts - and even alongside outside/private contracts if you want to do so. The results of the calculation also won’t be a million miles away from what you’d get from an umbrella, you just need to account for the umbrella fee (rather than an accountant’s fee) in the sales edit page.

    The calculator also models things that the at source deduction won’t account for, e.g. student loan deductions, and the fact that although as you quite rightly say there’s no 5% expense allowance, a company running a deemed payment does still have admin expenses and therefore can’t usually withdraw the whole amount that they have paid deductions against.

    The private sector calculations do indeed take account of the 5% general admin allowance. If you enter private IR35 sales then the calculator will automatically do the deemed payment calculation and allocate it as salary (you can click on the deemed payment figure to see the calculation).

    Cheers.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Lance View Post
    Neither. First page loads. And no matter how many times I mash the beta button with my fat fingers nothin happens.
    PABKAC

    Leave a comment:


  • tom at seamless
    replied
    Originally posted by Lance View Post
    Neither. First page loads. And no matter how many times I mash the beta button with my fat fingers nothin happens.
    Are you just getting the beta button? No sliders/data?

    Leave a comment:


  • elsergiovolador
    replied
    Don't want to rain...

    But why inside IR35 income has anything to do with your company in your calculator? If you are inside in public sector then you are effectively a temp employee of your client or umbrella (without rights) and the money you receive is your salary and has nothing to do with your company books.

    In private sector I think there is 5% relief that you can use towards running costs of your company.

    Leave a comment:


  • Lance
    replied
    Originally posted by tom at seamless View Post
    Are you getting an error or endless loading? It’s been working OK for me in Safari on iOS.


    .
    Neither. First page loads. And no matter how many times I mash the beta button with my fat fingers nothin happens.

    Leave a comment:


  • tom at seamless
    replied
    Originally posted by WordIsBond View Post
    Ok, some other suggestions.

    Would be nice to accommodate not just two shareholders, but an option for two directors, where you can set the director's stipend/salary for each.
    This is possible in the app (additional shareholders, employees, directors and combinations of those), but I appreciate the input on it being useful here too

    An option to claim employment allowance, if you do have two directors on a sufficient salary.
    Pleased to say you can enable this under Settings (three vertical dots).

    Might as well have an option for reimbursement for business use of home, too. Not a lot of money, obviously, but worth doing. And an option for the amount of BIKs, in case someone wants to go that way.
    Specific expenses can be added if you click on the expense amount field in the table.
    I am considering an option to say that an expense is to be reimbursed and then add those to the personal income section. Would that be useful?

    If you really want to make it awesome you can let us enter our pension contributions and the percentage of our time that is spent on RDEC projects and reflect that in the corporation tax.
    Pensions can be configured in the settings (all three scheme types supported), although if it’s just the company contribution that is being made then that could also just be added as an expense.

    Thanks for the feedback, really appreciated.

    Leave a comment:


  • tom at seamless
    replied
    Originally posted by Lance View Post
    Doesn’t work in safari on iOS.
    Fine in chrome.
    Are you getting an error or endless loading? It’s been working OK for me in Safari on iOS.

    Don’t see the point of vat at all.
    With you 100% on that. Now we just need to persuade HMRC!

    And yeah. The slider that tops out at £100k is a bit daft.
    Cool. I’ll up that to 200k as suggested.

    Also... set the bae figure for dividends to be at the threshold for higher rate. And maybe have a couple of bright warnings as each tax threshold is crossed..
    Thanks for the suggestion, much appreciated.

    Nice interface. Not bad for a beta.
    Thanks! Appreciate the input.

    Leave a comment:


  • WordIsBond
    replied
    Ok, some other suggestions.

    Would be nice to accommodate not just two shareholders, but an option for two directors, where you can set the director's stipend/salary for each.

    An option to claim employment allowance, if you do have two directors on a sufficient salary.

    Might as well have an option for reimbursement for business use of home, too. Not a lot of money, obviously, but worth doing. And an option for the amount of BIKs, in case someone wants to go that way.

    If you really want to make it awesome you can let us enter our pension contributions and the percentage of our time that is spent on RDEC projects and reflect that in the corporation tax.

    Leave a comment:


  • Lance
    replied
    Doesn’t work in safari on iOS.
    Fine in chrome.

    Don’t see the point of vat at all.

    And yeah. The slider that tops out at £100k is a bit daft.

    Also... set the bae figure for dividends to be at the threshold for higher rate. And maybe have a couple of bright warnings as each tax threshold is crossed..

    Nice interface. Not bad for a beta.

    Leave a comment:

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