Lost at sea...Inside IR35.what % should I expect to take home?

[BrilloPad]

It is. Anyone promising much more than that, or covering expenses, is either telling lies or lining you up for a very large future tax bill.

Dunno what you permie rate was, but as a sanity check you're looking at the equivalent of about £35k salary

Very very true. http://forums.contractoruk.com/hmrc-...following.html

[Brummie]

... I would also like to know what % other contractors take home as net pay.

A month ago I too accepted a TA role, inside IR35, at £550-575 a day. When working out take home, it was roughly £350 (approx) outside IR35. Needless to say, I left it within 24 hours.

One thing I learned during the process, is that few umbrella companies said that I can claim expenses etc upon submission of receipts. But they also said, I need to workout and tell them a fixed number as an expense ahead. This number is fixed and cannot be changed. That fixed amount will be deducted and any balance will be kept by the umbrella. For e.g. if you project your monthly expense as £1000, umbrella will deduct this and pay you based on your receipts. If your receipts are worth £400, you will be deducted £1000, you get paid £400, the balance £600 would be taken by them. I guess they call it as fixed expense model or something. But I felt it was bit fishy, so didn't go with that option.

I have a feeling that being inside, your day rate is way too low. Are you sure you will be getting at least £6.70 after tax deductions?

[northernladuk]

A month ago I too accepted a TA role, inside IR35, at £550-575 a day. When working out take home, it was roughly £350 (approx) outside IR35. Needless to say, I left it within 24 hours.

So you started work before realising and then just left the client in the lurch?

[Brummie]

So you started work before realising and then just left the client in the lurch?

We just agreed to terminate the contract. Wise move from the client (saved money by not paying for the notice period) + I didn't charge for that one day.

[northernladuk]

We just agreed to terminate the contract. Wise move from the client (saved money by not paying for the notice period) + I didn't charge for that one day.

Bet they thought you were a right pillock. No wonder they agreed.

[kysto]

A month ago I too accepted a TA role, inside IR35, at £550-575 a day. When working out take home, it was roughly £350 (approx) outside IR35. Needless to say, I left it within 24 hours.

One thing I learned during the process, is that few umbrella companies said that I can claim expenses etc upon submission of receipts. But they also said, I need to workout and tell them a fixed number as an expense ahead. This number is fixed and cannot be changed. That fixed amount will be deducted and any balance will be kept by the umbrella. For e.g. if you project your monthly expense as £1000, umbrella will deduct this and pay you based on your receipts. If your receipts are worth £400, you will be deducted £1000, you get paid £400, the balance £600 would be taken by them. I guess they call it as fixed expense model or something. But I felt it was bit fishy, so didn't go with that option.

I have a feeling that being inside, your day rate is way too low. Are you sure you will be getting at least £6.70 after tax deductions?

thanks for your reply and sorry I don't quite understand what you mean by £6.70 after tax?

[northernladuk]

thanks for your reply and sorry I don't quite understand what you mean by £6.70 after tax?

I think he is being fasi faceshu fashes taking the piss.

[jamesbrown]

£550-575 a day

Determined by the number of screw ups each day?

[lucyclarityumbrella]

Hey,

Thanks for your reply, I'll be sure to have a look at the threads and company mentioned above. It's actually a TA role and not a BA, so 300 is about the going rate in Scotland, however inside IR35 looks like it could be a bugger, if the 62/64% net is to be believed.

Happy to have a chat and explain it to you kysto.

[kysto]

I think he is being fasi faceshu fashes taking the piss.

Would seem that way! either that he was using the same calculator he did to negotiate the role he left in 24hrs