Hi,
I'm a relatively young IT Analyst who to date has always being employed in a permanent role, however I am currently in the negotiation phase of a contract role with a day rate of around £300, which falls inside IR35. Having no previous experience of operating within a Ltd company, I'm....lost at sea.
The reason for this is due to the umbrella companies and comparison companies I have been in contact with. I've been told there is 2 options, a standard umbrella where net pay is around 62% of my daily rate, which makes me question if taking on a contract role inside IR35 is worth while? or "enhanced tax efficient" umbrella where they promise 86% take home which is fully HMRC compliant. I've been around long enough to know that if something sounds too good to be true then it probably is, however I don't understand how they could legally sell and advertise this method as legal and compliant... if it wasn't?
Any help is appreciated, and I would also like to know what % other contractors take home as net pay.
Thanks
I'm a relatively young IT Analyst who to date has always being employed in a permanent role, however I am currently in the negotiation phase of a contract role with a day rate of around £300, which falls inside IR35. Having no previous experience of operating within a Ltd company, I'm....lost at sea.
The reason for this is due to the umbrella companies and comparison companies I have been in contact with. I've been told there is 2 options, a standard umbrella where net pay is around 62% of my daily rate, which makes me question if taking on a contract role inside IR35 is worth while? or "enhanced tax efficient" umbrella where they promise 86% take home which is fully HMRC compliant. I've been around long enough to know that if something sounds too good to be true then it probably is, however I don't understand how they could legally sell and advertise this method as legal and compliant... if it wasn't?
Any help is appreciated, and I would also like to know what % other contractors take home as net pay.
Thanks
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