Reply to: Take home pay on 95k

[Let-Me-In]

Just lie about it...

[biggie]

hmm sounds like i'm getting ripped off
considering the permi role is 65.5k in credit derives

may be better getting another 1.5 years esperience and then hitting the contact market marking a total of 3 years in IB.

only prob is I may be getting to old to contract

[dude69]

Stick another 30 - 40k on it and you are getting towards par, based on a 45 week year.

About £550/day is what most people should be aiming for with normal skills ATM. Settle for £500 if need be.

[pickle]

No it's not that much, no, not in IB. And times will be harder.

Stick another 30 - 40k on it and you are getting towards par, based on a 45 week year.

[dude69]

hmm the 95k comment out of interest is this out of sarcasm or do you think,
95k isn't that much (especiialy for a IB)...

No it's not that much, no, not in IB. And times will be harder.

[biggie]

hmm the 95k comment out of interest is this out of sarcasm or do you think,
95k isn't that much (especiialy for a IB)...

reason why i ask is because I was thinking of talking a perment role and then go contracting again afters a couple of additional years experience.

[max]

Ok guess I should have provided more information.

thanks for the illistration ASB it's been very helpfull.

the information I guess I was hoping for was, what do people who earn around 95k via contracting can expect to take home in a given year if:-

1) they are outside IR35
2) Take a bit more then the minimum wadge
3) travel expenses of around £1200
4) expenses including insurance and accoutancy arround 2K.
5) Try to withdraw the marjority of the revenue via dividends.

Ok...one more question, do you want the wedge now..or are you willing to hold our for taper relief over a number of years(lucrative)?



Point is...now you are a contractor..you choose:

1. when to work
2. what hours you work
5.(3 sir!) how much you earn each year
6. how much tax you pay.

Your call....go on be a man


PS: 95k...hmmm..don't be under selling yourself in these boom times.

[biggie]

Ok guess I should have provided more information.

thanks for the illistration ASB it's been very helpfull.

the information I guess I was hoping for was, what do people who earn around 95k via contracting can expect to take home in a given year if:-

1) they are outside IR35
2) Take a bit more then the minimum wadge
3) travel expenses of around £1200
4) expenses including insurance and accoutancy arround 2K.
5) Try to withdraw the marjority of the revenue via dividends.

[TheFaQQer]

IR35 has been dead for years. Join the PCG, buy the insurance, stick the 3 choice clauses in your contract. You are home and dry. Anyone still paying it is doing so voluntarily. This is a FACT.

Wow - you must be psychic! I've seen nothing in this thread (must read it again more carefully) that says that the OP has got "three choice clauses" in a contract, bought insurance or joined the PCG. Indeed, given the "no expenses" from the original post, it would seem that there is no PCG membership or insurance that's been paid for.

Until IR35 is removed completely, then your "FACT" is rubbish.

Without knowing whether the OP has declared himself in or out of IR35 (whether you think that he should or should not be paying it), it is impossible to say what the take home pay may be.

[partimer]

not a fact

Don't want to start an argument but IR35 is not dead. Don't say it's a fact unless they strike it off legally. The inspectors may treat it as a low priority but it don't mean IR35 has evaporated from the law books. All it takes is Fatboy Gordon to hit a bad spot financially and he can do his "re-interpretation", like S660a. Before you know it those who didn't protect themselves are in deep doo-doo.

Contracts and their clauses are not the same as your actual working practises. People should do their home work rather than hope for silver bullets.
You may not get struck by lightning but somewhere, some poor s0d does.

[pickle]

[QUOTE=TheFaqqer]Because he might actually be inside IR35! And it will cost more if you get caught.
[QUOTE]

IR35 has been dead for years. Join the PCG, buy the insurance, stick the 3 choice clauses in your contract. You are home and dry. Anyone still paying it is doing so voluntarily. This is a FACT.

[TheFaQQer]

So why would he declare himself inside, if its going to cost him a bundle?

Because he might actually be inside IR35! And it will cost more if you get caught.

Or, he may just have been advised badly. A friend of mine has always paid IR35 on every contract he's been on, because that's what his (lazy) accountant advised him to do. Been paying it from the start, even though I'd bet that none of his contracts are actually inside IR35...

[pickle]

I'll save some time and ask the next obvious question - are you inside IR35 or not? Makes a HUGE difference in what you might be able to take home.

So why would he declare himself inside, if its going to cost him a bundle?

[TheFaQQer]

I'll save some time and ask the next obvious question - are you inside IR35 or not? Makes a HUGE difference in what you might be able to take home.

[ASB]

I'll try....

95,000
5,200 Salary
0 NI

89,800
17,960 CT

71,840 Net dividend
79,822 Inc Tax credit

34,600 is not higher rate. [31140 net dividend]
45,222 is higher rate [40,700 net = 10175 tax]

So total = 5200 + 71840 - 10175 = 66865