Originally posted by Yonmons
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Currently you get - in effect - to spend 58.60/per day of gross income in order to do the role.
If you are operating low salary/high dividend then it will be 74 to produce that income. So that is 15 quid a day worse off.
If inside IR35/brolly and a standard rate taxpayer then it will be about 98. 40 quid a day worse off.
As a 40% tax payer the it will be about 55 quid a day worse off.
That's quite a big change, and before factoring in new dividend tax or forced into IR35.
That level of change is bound to make quite a lot of people question whether they should perhaps do something else.
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Edit. Checking it on a salary calculation it's not that bad.
Edit: Ran the calculations in a different way, still pretty awfult butnot so bad.
Assumption, salaried and total billing 80k, expenses 12,500.
With T+S
Exps: 12,500
Er's Ni: 7201
Salary: 60,300
Net 42,300
No T+S:
Er's NI 8717
Salary 71280
Net Salary in hand 48,688
After expenses 36,188
So, worst case likely to be 6,200 a year worse off. Still pretty chunky though.
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