PAYE Projection

[lucyclarityumbrella]

PAYE on £460 per day nets you £6,165.62 per month, but Eek is right the pension would help put you under the £100k threshold if you can justify it. If your income over £100,000, then your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £125,000 or above.

[haverer]

£460 with holiday pay implies you are getting £460 * 52 * 5 days on an annual basis or £119,600 a year - hint you really want to use a pension and salary sacrifice to get that below £100,000

I think it ends up with a take home of £300.03 a day / £6500 ish a month

Thank you for the reply ?

If I get it below the £100,000 mark by putting a good amount into my pension, would this mean I pay less tax I assume? So would it work out around the same but with money saved into a pension? Many thanks.

[eek]

Afternoon everyone.

I am nearing the end of my current contract (which is inside IR35) at a rate of £600 per day. I have been offered an extension but a new agency is taking over. I was advised by the Company I am contracting for that they would be happy to pay me the same daily rate. The Agency have advised that I would be under PAYE and that my daily rate would be £460 Gross. They said NI and Tax will "come off at source" but I will get holiday pay and access to a pension.

I have asked for a weekly projection so I can compare this with my take home at the moment but they are unable to provide me with this and have said to speak to an accountant.

Is there anyone who can shed some light on this for me please? I just want to ensure I will end up with a similar take home. I have looked on the forum for similar questions but I am none the wiser.

Many thanks.

£460 with holiday pay implies you are getting £460 * 52 * 5 days on an annual basis or £119,600 a year - hint you really want to use a pension and salary sacrifice to get that below £100,000

I think it ends up with a take home of £300.03 a day / £6500 ish a month

[haverer]

Afternoon everyone.

I am nearing the end of my current contract (which is inside IR35) at a rate of £600 per day. I have been offered an extension but a new agency is taking over. I was advised by the Company I am contracting for that they would be happy to pay me the same daily rate. The Agency have advised that I would be under PAYE and that my daily rate would be £460 Gross. They said NI and Tax will "come off at source" but I will get holiday pay and access to a pension.

I have asked for a weekly projection so I can compare this with my take home at the moment but they are unable to provide me with this and have said to speak to an accountant.

Is there anyone who can shed some light on this for me please? I just want to ensure I will end up with a similar take home. I have looked on the forum for similar questions but I am none the wiser.

Many thanks.