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Previously on "inside vs outside ir35 rates when spose not working + paying yourselves pension"
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Originally posted by leo123 View PostNow I matched my perm salary + bonus etc. to the inside ir35.
However contract is more risky.Do you know if umbrella companies pay pension? (When outside ir35 I used to pay by myself).
Also in perm if you are redundant you are paid at least your notice period...
The plus of contracts is you don't have the bloody annual and mid-year reviews of your performance...
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Originally posted by leo123 View Post
I was outside. Just paid from my limited company account to her pension, which is tax efficient.
Also when inside I used to pay myself and my wife pensions (which goes before the tax).
If you are paying her like 8k then anything over say 3.5k a year is going to be highly questionable..
And up to a point you might has well pay yourself the full amount as it comes of CT anyway, no point splitting it unless you are maxing your 40k a year.
I'm guessing you paid her much more than 3.5k and are getting some highly dubious advice.. but I could be wrong.
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And back to NLUK's question: What rate have you been offered inside?
You say you've got an offer on the table of £600 outside, but how much is the inside gig offering you?
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You are right.
I worked many years outside before Covid, then I worked perm.
Now I matched my perm salary + bonus etc. to the inside ir35.
However contract is more risky.
Do you know if umbrella companies pay pension? (When outside ir35 I used to pay by myself).
Also in perm if you are redundant you are paid at least your notice period...
The plus of contracts is you don't have the bloody annual and mid-year reviews of your performance...
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We don't know. This has been asked a thousand times. The calculators are very generic and tend to give different answers even with the same inputs so can't be taken as anything but a finger in the wind. They certainly aren't set up for complex arrangements or associated benefits either. They don't take in to account previous earnings that year, benefits like director phone, expenses loop holes and a load of stuff which affects the in your pocket value which is important so are a sledgehammer guesstimation and best.
You'll get a very approximate number and then beyond that you will have to look at other aspects of each role you are comparing for non tangible benefits. Role choice is not always about the money.
When all this hit someone came up with a very rough 35% uplift is required comparing an outside vs inside but again, makes no consideration for LTD setup etc.
My question is why are you trying to compare? Have you got two roles or are you just wondering so you are ready to make a decision if a certain role appears? As I say, a flat like for like isn't the only thing you need to consider when taking a gig.
I'm half tempted to ask how you paid your wifes pension from an inside gig.
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inside vs outside ir35 rates when spose not working + paying yourselves pension
How much will £600 daily outside ir35 (when your spose does not work and you both are 50/50 shareholders of your limited company, so you each pay minimal salary + dividends) will match the inside daily rate?
Online calculator (contractorcalculator.co.uk) shows the matching outside rate £725.
But I cannot believe that. I don't think it includes correct limited company management (when you are outside).
Also when inside I used to pay myself and my wife pensions (which goes before the tax).
Any ideas what will be the outside match in my case?
Many thanks!Tags: None
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