Things seem to be different from 2 years ago

[anonymouse]

Worked through a brolly and take home was 67%, same client and brolly take home is now 58%.Inside IR35 public sector. So what changed?

[SueEllen]

Tax code.

[malvolio]

Faked expenses?

[GhostofTarbera]

You were on a loan scheme back then and not realised

58% is still to high by 4-5 %


Sent from my iPhone using Contractor UK Forum

[lucyclarityumbrella]

Day rate increased moving you tax brackets?

[anonymouse]

You were on a loan scheme back then and not realised

58% is still to high by 4-5 %


Sent from my iPhone using Contractor UK Forum

Oh the irony, HMRC PSL recommending a loan brolly. No, just profit share.

[anonymouse]

Day rate increased moving you tax brackets?

New one is 10% less than the old one, but good point though.

[hobnob]

58% is still to high by 4-5 %

58% sounds about normal from my experience; I assume that it depends on your daily rate, and therefore how much PAYE they estimate. Also on whether you're making pension contributions.

Quantifying it a bit (for a 5 day week):

• Dec 2018, Sapphire DNP, £200/day. Take home pay was £657/£1000 = 65%. (No pension contributions.)
• Jun 2019, Contractor Umbrella, £300/day. Take home pay was £961/£1500 = 64% (no pension contributions).
• Jan 2020, Contractor Umbrella, £300/day. Take home pay was £844/£1500 = 56% (with pension contributions).
• Apr 2020, NASA Umbrella, £280/day. Take home pay was £835/£1400 = 60% (no pension contributions).
• Sep 2020, NASA Umbrella, £280/day. Take home pay was £798/£1400 = 57% (with pension contributions).

I got a tax rebate for the past 2 financial years (partly due to a few months on the bench), so Sapphire and Contractor Umbrella definitely weren't underestimating the PAYE. Maybe that would be different if you're earning all year round, but that seems optimistic in the current climate!