I'm currently in a contract that is outside IR35, however from next year onwards I'd expect most assignments I do to be deemed inside IR35 (assuming the proposed changes come into force in the private sector).
I've now been offered the option of taking up a permanent role at some point in the future, so I wanted to start by comparing them from a purely financial perspective. I am aware that it will most likely work out less attractive than my current set-up, however, it could work out to be a better option than being inside IR35.
My first problem has been that every online calculator generates different results when given the same input, so I was wondering if anyone could suggest a reliable source?
Once I have a baseline to compare against, I can extend this to see what would be the required day rate inside IR35 to equal the permanent salary + bonus on offer.
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Inside / Outside IR35 vs Permanent salary
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- Lemon Slice
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Re: Inside / Outside IR35 vs Permanent salary
I would suggest you post this question on a contractor bulletin board such as https://www.contractoruk.com/forums/. Be prepared for the flack you will get about whether your current arrangements are outside ir35 and ignore it. You will probably get a lot of useful stuff too.
I used to be a contractor and I calculated all this stuff myself in spreadsheets. Are you not able to do that yourself?
Failing that ask your accountant to give you calculations at your current rate for inside ir35 and then use one of the multitude of permanent employment calculators to work backwards to the same net income.
I used to be a contractor and I calculated all this stuff myself in spreadsheets. Are you not able to do that yourself?
Failing that ask your accountant to give you calculations at your current rate for inside ir35 and then use one of the multitude of permanent employment calculators to work backwards to the same net income.
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