Consultancy rate / permanent salary

How can you possibly be in a position whereby anybody would want to take you on as a contractor when you lack basic multiplication skills?
 
Assuming you'll be working 240 days a year, £72k. What you should be asking though is what your take home pay will be - a salary of £72k will be subject to income tax at 40%. As a contractor there are a variety of tax dodges available so you don't pay that much tax.
 
Roughly.....
£3600 take home per month through an umbrella - least hassle.
£4300 take home through your own ltd with minimal expenses - mostly travel and food.
£5000 take home if you dont mind living on the edge and are prepared to deal with grief from HMRC legally ;)

Dont forget you dont get paid holidays/bank holidays etc.

I use option 3 :)
 
As above, 2011 has 251 working days. Obviously some of them have passed though.
251 x 300 = £75300 as above consider becoming a ltd to save some tax. Tbh though earning that get an accountant, he will save you more than he costs you.
 
An accountant will cost you about £500/600pa. If you can't work out the above then it's well worth it as he'll save you money and stop HMRC from locking you up!
 
Well no, I just wasn't aware of how many working days there are in a year without looking it up and so asking here was much quicker and easier.

I.e get the Internet monkeys to do it for me.

So is this not taxed at the normal tax rates? How can a contractor "dodge" any of that?
 
pioneer2000 said:
Well no, I just wasn't aware of how many working days there are in a year without looking it up and so asking here was much quicker and easier.

I.e get the Internet monkeys to do it for me.

So is this not taxed at the normal tax rates? How can a contractor "dodge" any of that?
Click to expand...

Form your own ltd and get an accountant to sort out your wage and pay you in dividends etc and using expenses to offset your tax :)

Have a read of - http://www.sjdaccountancy.com/about/ourservices/ltd_vs_umbrella.html
 
Sheesh, you try and be helpful in a thread attracting a fair number of unhelpful replies and you get called an "Internet Monkey" :rolleyes:

Read up on IR35.
 
pioneer2000 said:
Well no, I just wasn't aware of how many working days there are in a year without looking it up and so asking here was much quicker and easier.

I.e get the Internet monkeys to do it for me.

So is this not taxed at the normal tax rates? How can a contractor "dodge" any of that?
Click to expand...

So the OP is indulging in irony, calling people who provided assistance monkeys..and then straight on:

Teledude said:
Form your own ltd and get an accountant to sort out your wage and pay you in dividends etc and using expenses to offset your tax :)

Have a read of - http://www.sjdaccountancy.com/about/ourservices/ltd_vs_umbrella.html
Click to expand...


:rolleyes:???
 
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