grahamc Posted September 4, 2008 Share Posted September 4, 2008 Looking at moving into IT contracting... Just wondering what sort of tax rate you pay as a contractor?? daily rate will be 300 - 350 Link to comment Share on other sites More sharing options...
caliAl Posted September 4, 2008 Share Posted September 4, 2008 You should look into IR35. If you fall under IR35 it will be about 40% tax I think. Link to comment Share on other sites More sharing options...
caliAl Posted September 4, 2008 Share Posted September 4, 2008 There's load of IR35 online calculators. Hit google to find them. Link to comment Share on other sites More sharing options...
michael Posted September 4, 2008 Share Posted September 4, 2008 Looking at moving into IT contracting... Just wondering what sort of tax rate you pay as a contractor?? A lot of it will depend on who you use to process the payment and the method they adopt, best to shop around and see what works best for you. This lot email me a lot with the promise of more cash but I haven't actually tried them: http://www.tarpon-uk.com A friend of mine works (or worked) for http://www.parasolgroup.co.uk - they seemed to be pretty decent. Link to comment Share on other sites More sharing options...
Homer Posted September 4, 2008 Share Posted September 4, 2008 Inside IR35, upwards of 40% (remember you have to pay NI twice so factor that into your rate) Outside IR35, with a good accountant, you can get below 22% overall. That's a pretty healthy rate Graham, nice Link to comment Share on other sites More sharing options...
JustGav Posted September 4, 2008 Share Posted September 4, 2008 That's a pretty healthy rate Graham, nice It is, especially in this climate. Link to comment Share on other sites More sharing options...
UltraFlynn Posted September 4, 2008 Share Posted September 4, 2008 Looking at moving into IT contracting... Just wondering what sort of tax rate you pay as a contractor?? daily rate will be 300 - 350 PAYE = ~40% Ltd Company = ~35% Umbrella Company = ~18% If you're interested in the last option then PM me and I can give you details of scheme. Link to comment Share on other sites More sharing options...
Homer Posted September 4, 2008 Share Posted September 4, 2008 PAYE = ~40% Ltd Company = ~35% Umbrella Company = ~18% If you're interested in the last option then PM me and I can give you details of scheme. I have a Ltd company and I pay a lot less than 35% (Run the business from home so there's a lot more to claim back, which helps) If you go with an umbrella remember they'll take a percentage off the total to cover the employers NI (not too clued up on them these days as it's been a long time since last speaking to one) Link to comment Share on other sites More sharing options...
ShamelessTT Posted September 4, 2008 Share Posted September 4, 2008 Yeh im the same, its 20% on your profits on year end with mixing your pay up as dividens (10% tax) you can reduce ur NI etc etc. Ive just done my end of year, you can save a fortune with a good accountant. Link to comment Share on other sites More sharing options...
grahamc Posted September 4, 2008 Author Share Posted September 4, 2008 Inside IR35, upwards of 40% (remember you have to pay NI twice so factor that into your rate) Outside IR35, with a good accountant, you can get below 22% overall. That's a pretty healthy rate Graham, nice Time to start reading... Thats an outside of London rate, so not the best, but I still get to cycle to work, so that is a big bonus for me. It is, especially in this climate. Cool! And its a 1 year contract... ok does not mean much in the world of contracting, but still. PAYE = ~40% Ltd Company = ~35% Umbrella Company = ~18% If you're interested in the last option then PM me and I can give you details of scheme. PMd Yeh im the same, its 20% on your profits on year end with mixing your pay up as dividens (10% tax) you can reduce ur NI etc etc. Ive just done my end of year, you can save a fortune with a good accountant. Once the missus moves to contracting as well, w are going to do exactly that! Link to comment Share on other sites More sharing options...
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