UK average tax rate for contractor

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Paddy replied

4 February 2010, 10:23
Originally posted by Alf W View Post

I'm sure I've seen umbrella schemes with dispensations from the Inland Revenue to let you off some of the tax you might owe and allow you to keep 80% plus for yourself.

Yes, and those ones in the IOM that let you keep 96%
Leave a comment:
Alf W replied

4 February 2010, 09:55
I'm sure I've seen umbrella schemes with dispensations from the Inland Revenue to let you off some of the tax you might owe and allow you to keep 80% plus for yourself.
Leave a comment:
Paddy replied

4 February 2010, 09:45
Originally posted by aussielong View Post

What's the average tax rate in the UK for a contractor, if you say earn 100K pa before tax and do the limited company stuff...?

Obviously each persons will be different but i'm just after a ball park figure for what I could expect if I started contracting in London again.

Are we talking 30% effective rate over the year, if you stay within the law?

£100 000
Less allowable expenses £2500
= £97500
Less Employers National Insurance. £8000
Less Employees National Insurance. £10000
Less Income Tax 35000
Less business rates £22000
Less council tax £3200

£19,300
Leave a comment:
portseven replied

4 February 2010, 09:11
The tax rate for contractors is whatever the government deem to be 'fair'. If its any different they will change the law retrospectively to make sure you pay your 'fair' share!
Leave a comment:
PAH replied

4 February 2010, 09:02
Simple answer is to use a calculator to work out likely scenarios.

See the CUK Navigation panel for more details.
Leave a comment:
aussielong started a topic UK average tax rate for contractor

4 February 2010, 06:03
UK average tax rate for contractor

What's the average tax rate in the UK for a contractor, if you say earn 100K pa before tax and do the limited company stuff...?

Obviously each persons will be different but i'm just after a ball park figure for what I could expect if I started contracting in London again.

Are we talking 30% effective rate over the year, if you stay within the law?
Tags: None