A useful comparison video with useful links in the description. A lot of agencies with reach out to contractor and say, "I have a contract at xyz big company." When you show interest, then they will say, "The client has deemed the role as inside IR35." At that point, you as the recruiter for the SDS and he or she will make some excuse on behalf of their client as to why they do not need to issue an SDS. They probably pull this with the public sector but our experience is that public sector day rates are higher because the tax payer is paying for it. In the private sector the default position is that the client wants to pay the contractor an outside IR35 day rate for an inside IR35 contract. We've seen it with the big banks. Something to consider out the new legislation, if a majority of private sector contracts are inside IR35, expect big companies to make redundancies during a slow period and them bring them back as inside IR35 contract for short contracts.
INSIDE 35 : you are taxed 36-55% by the company umbrellas. You cannot deduct anything, not even a paper clip. At the end of the year you will be taxed again by HMRC for the money you have received. So you have to avoid ! Yo can work for a week or two, to make other people richer! Before you sign ask for a payment example !
I like your voice. I knew about most of what you said, but your emphatic voice felt kind of…soothing and it felt nice to hear from another contractor brother. with ir35 screwing us royally, it’s great to find such positive people with good info. All the best to you ! :)
Great video Like from me. Paying too much tax but I thought 25% of my earnings - I will survive. However last month my umbrella company submitted 2 invoices in one month. HMRC thought I was earning a fortune and charged a couple of grand extra in tax. That was unacceptable. I can’t work and pay out 50% of my earnings. It’s not acceptable.
outsides involves corporation tax, so you will likely need an accountant about 1k a year and he'll figure it out for you. There's stuff like VAT, claimable discounts o travel, rent, food, company car. Corp tax is lower than employment tax, you can also dribble the money out the company so you pay less tax over the long term
A useful comparison video with useful links in the description.
A lot of agencies with reach out to contractor and say, "I have a contract at xyz big company." When you show interest, then they will say, "The client has deemed the role as inside IR35." At that point, you as the recruiter for the SDS and he or she will make some excuse on behalf of their client as to why they do not need to issue an SDS.
They probably pull this with the public sector but our experience is that public sector day rates are higher because the tax payer is paying for it. In the private sector the default position is that the client wants to pay the contractor an outside IR35 day rate for an inside IR35 contract. We've seen it with the big banks.
Something to consider out the new legislation, if a majority of private sector contracts are inside IR35, expect big companies to make redundancies during a slow period and them bring them back as inside IR35 contract for short contracts.
INSIDE 35 : you are taxed 36-55% by the company umbrellas. You cannot deduct anything, not even a paper clip. At the end of the year you will be taxed again by HMRC for the money you have received. So you have to avoid ! Yo can work for a week or two, to make other people richer! Before you sign ask for a payment example !
Great stuff and well explained .thank you
Thanks for the feedback!
That was helpful, thank you.
Useful info, will you make an updated one now that the new rule changes have been announced?
th-cam.com/video/3nyuPitat6c/w-d-xo.html
Watching it now. Is the market better now that it has been 11 months since u posted? Thanks for the update
Due to COVID I think its probably worse it anything. I think the pandemic has added another year onto last years predictions.
This was super useful. Thanks so much
Thanks for the positive feedback :)
I like your voice. I knew about most of what you said, but your emphatic voice felt kind of…soothing and it felt nice to hear from another contractor brother. with ir35 screwing us royally, it’s great to find such positive people with good info. All the best to you ! :)
Great video Like from me. Paying too much tax but I thought 25% of my earnings - I will survive. However last month my umbrella company submitted 2 invoices in one month. HMRC thought I was earning a fortune and charged a couple of grand extra in tax. That was unacceptable. I can’t work and pay out 50% of my earnings. It’s not acceptable.
Hi John what about outside IR35 or is that PAYE?
outsides involves corporation tax, so you will likely need an accountant about 1k a year and he'll figure it out for you. There's stuff like VAT, claimable discounts o travel, rent, food, company car. Corp tax is lower than employment tax, you can also dribble the money out the company so you pay less tax over the long term
No way! Didn't you work for Valtech? I recognise you 😆
Yes, I did a brief stint at Valtech for 6 months a couple for years ago! Are you still there?
@@jondjones Haha, I'm glad I did actually recognise you and you're not a doppelgänger 😄 I worked there from September 2017 til August 2020.