Contract offer: Good Calculator to use to calculate income with these details?

[HealthyProtein]

Yes definitely.

[LondonManc]

Those two sentences don't go together - if you want to make it as accurate as possible then you need to accurately assess how many days you are likely to work rather than assuming that you'll work 5 days a week, 52 weeks a year.

If you want accuracy, then you'll need to start by deducting the bank holidays. Then deduct the number of days holiday you plan to take. Then deduct the number of says that the client is unlikely to want you to work - over the next 6 months that number may well be different from the following 6 months, so you can't just assume that they will be the same. Deduct a couple of days for if you are likely to be unavoidably unable to work (how ill do you get? how ill does anyone in the family get? how will you get to work if the car breaks down or the roads are snow blocked? etc).

Once you have that reasonable guess, then you can start to calculate things - but it's not going to be accurate because lots of those are variables that you won't know about at this stage. And that's just the income - your expenses over the year will be hard to accurately assess at this stage.

So rather than looking for accuracy, look for an estimate that is based on reasonable expectations.

That's why I said build a spreadsheet.

You can then tie in expenses to multiples of days work (e.g. days * miles), while other costs are fixed - insurance is for a year, accountants, etc.

[Platypus]

I've used this calculator in the past to try to faff with perm vs. inside IR35 vs. outside IT35 calcs to compare net incomes

https://goodcalculators.com/contractor-calculators/

[WTFH]

H
Sorry I am trying to make this as accurate as possible. Or should I change it to £500*260?

This may give you an idea as to the number of billable days that contractors invoice in a year.
http://forums.contractoruk.com/gener...7-jan-dec.html

Aim for around 230 days and you might be close.
As well as your accountant, don't forget PI/PL insurance and the number of miles you are doing (it's not all 45ppm)

[TheFaQQer]

Sorry I am trying to make this as accurate as possible. Or should I change it to £500*260?

Those two sentences don't go together - if you want to make it as accurate as possible then you need to accurately assess how many days you are likely to work rather than assuming that you'll work 5 days a week, 52 weeks a year.

If you want accuracy, then you'll need to start by deducting the bank holidays. Then deduct the number of days holiday you plan to take. Then deduct the number of says that the client is unlikely to want you to work - over the next 6 months that number may well be different from the following 6 months, so you can't just assume that they will be the same. Deduct a couple of days for if you are likely to be unavoidably unable to work (how ill do you get? how ill does anyone in the family get? how will you get to work if the car breaks down or the roads are snow blocked? etc).

Once you have that reasonable guess, then you can start to calculate things - but it's not going to be accurate because lots of those are variables that you won't know about at this stage. And that's just the income - your expenses over the year will be hard to accurately assess at this stage.

So rather than looking for accuracy, look for an estimate that is based on reasonable expectations.

[MrMarkyMark]

Yep.

He forgot the 8 bank and public holidays in England.

Then there are the days between Xmas and New Year the client won't want you to do work.

Plus his summer holiday - unless he wants to have a breakdown

Then the days for illness and other issues.

Plus the fact he only has a 6 month contract in hand with only a best case scenario to extend by another 6 months.

The worst case alternative is the 6 month could finishes early, or he may not be extended, then there could be potential bench time.

Depends what its for, but whatever way you look at it these sorts of calcs are only useful to a degree.

[SueEllen]

260 days? On what planet is that realistic?

Yep.

He forgot the 8 bank and public holidays in England.

Then there are the days between Xmas and New Year the client won't want you to do work.

Plus his summer holiday - unless he wants to have a breakdown

Then the days for illness and other issues.

[LondonManc]

260 days? On what planet is that realistic?

Let's forget VAT for now. At £500/day you get £1/day from collecting.

Day rate * expected days = revenue

Take off your salary (presume £11.5k)

Take off your other expenses:
mileage - 45p for first 10k, 25p thereafter
food - if you can prepare meals (assuming daily commute) then you shouldn't claim (based on what I've been told by my accountant).
insurance - whatever your PI, etc costs
accountancy costs

Whack all that in a spreadsheet and that will leave you with a *projected* profit figure for the year.

Calculate the corporation tax that you pay on it.

That leaves your net profit that you can take dividends from (don't forget your dividend tax calcs).

Rough figures, but we're not accountants; if you want a proper projected take home, ask yours.

[northernladuk]

Why are you trying to make it so accurate?

If you are using freeagent then plug it in and you'll get the exact numbers.

Failing that tap Simon Dolan up to see if he's got a copy of a spreadsheet lying around you could pump the numbers in.

But I would say don't get so hung up on the exact figure. It will never be right.

[CatOnMat]

Hi CatOnMat

Yes I take your point, I just need some pointers or calculators that already calculate this where I can just insert values.

Please can you suggest some options?

I use this one: Limited Company Tax Calculator

Annual Fee Income: In this field, do I enter my total income for the year? E.g. Day Rate of £500 * 5 days * 4 * 12 months?

Sorry I am trying to make this as accurate as possible. Or should I change it to £500*260?

Re: Annual Fee income it depends how much time you wanted to allow for holiday, training, sickness etc in a year and deduct them from the overall total of possible working days in the year (depends whether you expect to work weekends etc - although I presume not). You might also need to factor in that your client might enforce shutdown ("furlough") periods where you would not be billing either.

re 6 or 12 month period I would personally do 2 different calculations as even assuming things don't get curtailed there is typically no guarantee that extension will actually appear and you'd be more than ...

HTH

[cojak]

Best not to bother, you could be canned on day one.

Smartarse comments aren’t helpful stek.

[stek]

Best not to bother, you could be canned on day one.

[ChrisHadfield]

Hi CatOnMat

Yes I take your point, I just need some pointers or calculators that already calculate this where I can just insert values.

Please can you suggest some options?

I use this one: http://www.contractoruk.com/calculat...alculator.html

Annual Fee Income: In this field, do I enter my total income for the year? E.g. Day Rate of £500 * 5 days * 4 * 12 months?

Sorry I am trying to make this as accurate as possible. Or should I change it to £500*260?

[CatOnMat]

Hello all,

I have a contract offer and know the following details:

Duration 6 months with a potential to extend to 12 months
Daily Rate + VAT
I know the daily mileage
Daily food expenses
It's outside IR35

What calculator can I use from the web that gives fairly accurate indication on total income based on this?

I know things are accounting fee are missing but I can factor that in after.

Thank you

Surely if all you’re after is total income the a basic knowledge of arithmetic/Excel usage should suffice?

If OTOH you’re wanting to consider potential take home amounts then you’ll also need to factor in any income from other sources, tax code, any divis from other companies, how much you’re putting into pensions, fees & insurances, business entertaining etc, etc - so a bit more work but still not rocket science though.

Any “off the shelf” calculator will inevitably make assumptions for these various variables, which may greatly affect how close to your situation their results are likely to be.

[ChrisHadfield]

Hello all,

I have a contract offer and know the following details:

Duration 6 months with a potential to extend to 12 months
Daily Rate + VAT
I know the daily mileage
Daily food expenses
It's outside IR35

What calculator can I use from the web that gives fairly accurate indication on total income based on this?

I know things are accounting fee are missing but I can factor that in after.

Thank you