[JLR1969]

I am looking at a 6 month offer working for a company as a Senior Commercial Manager on an interim basis.

It's £450 a day for 5 days a week so £2250 a week

I can claim expenses on top such as travel to the office and customers etc.

I am not sure if this is a 1 off or whether I may get a taste for it.

My question is how much tax and NI do in need to pay the Revenue, what else do I need to pay?

Any advice would be really appreciated

[NISFAN]

Originally Posted by JLR1969

I am looking at a 6 month offer working for a company as a Senior Commercial Manager on an interim basis.

It's £450 a day for 5 days a week so £2250 a week

I can claim expenses on top such as travel to the office and customers etc.

I am not sure if this is a 1 off or whether I may get a taste for it.

My question is how much tax and NI do in need to pay the Revenue, what else do I need to pay?

Any advice would be really appreciated

It's a bugger dropping down to that level of pay

As for tax, you'll be on SA. The company should pay your tax as best as they can, and self assessment picks up the over/underpay. Or so I would have thought.

How much you pay depends on which tax bands you cross for the year.

[JLR1969]

Originally Posted by NISFAN

It's a bugger dropping down to that level of pay

As for tax, you'll be on SA. The company should pay your tax as best as they can, and self assessment picks up the over/underpay. Or so I would have thought.

How much you pay depends on which tax bands you cross for the year.

Thanks mate, will speak with an accountant to see what's the best way.

[gr4z]

Are you a limited company working as a director or going through an umbrella company? Makes a difference on what tax you pay.

[Smee]

cash in hand son!!

[....,,,,..,,..]

As mentioned run it all past a decent accountant.

A lot depends if umbrella company, etc.

Are you going via an agency, is that why a lower rate?

Apologies if you already have this info / links, however everything helps

http://www.sjdaccountancy.com/about/...m_manager.html

http://iim.org.uk

http://iim.org.uk/wp-content/uploads...er-2014-04.pdf

[isleaiw1]

If you are trying it and might not do it again then do the umbrella company thing, less hassle, they will pay you your earnings as expenses and salary and sort out the tax.

On the rate, check what base salary is for role, add any benefits (car allowance, bonus, pension contributions etc) then add employers NIC at 13% to base salary and bonus - then divide total by 45 and then by 5 to get day rate approximation. You may be surprised.... with a small pension contribution (say6%), no bonus and 7k car allowance, £450/day is about £77k a year ballpark....

Umbrella will also raise any invoices and deal with vat - if you set up your own limited company you have all that to do!

[Watsey]

First key question : is this role in a public sector organisation ? If so, the organisation is increasingly likely to play it very safe with HMRC and regard you as an employee therefore taxing all payments at source.

If it's for a private company/corporation, you have several options.

I'd go straight down the 'proper' route and set up your own Limited Company, and get an accountant on board. If you'd like a recommendation then feel free to PM me.

Corporation tax, VAT, and submission of accounts are all taken care of by the accountant (if included in the service package), but as a Director you are liable for reading and verifying their accuracy.

Operating a Limited Company has many benefits : salary / expense payments / pension payments / business services / etc are all accounted for pre-tax, for example.

If you work for >1 client in a tax year, and/or own business equipment, and have appropriate contracts and clauses in place (i.e. right of substitution) you can effectively demonstrate your independence and not fall foul of an IR35 claim for disguised employment. A decent accountant will also have a blanket insurance policy in place for all its clients which would insure the costs of an IR35 defence, but obviously any tax due to HMRC would not be insured.

In terms of your personal income, salary and dividends are subject to the published allowances and tax bands.

PM me if you have questions.

[225]

ltd company all the way but as said public sector bodies and contractors might be a bit iffy come 1st April. Hmrc changed the ir35 rules but then gave no guidance on what to do so NO ONE in Government has a clue even the bodies advising hmrc!

The government simply would stop working should all contractors walk out so will be interesting.

[rosstin]

This calculator should help.

https://listentotaxman.com/

Don't forgot over £100k per annum and you start to lose your personal allowance. Pension and other tax deductions can help you stay under the six figures.

[JLR1969]

Thank you all for your guidance very much appreciated. I reckon I would rather just find a job that's salaried seems easier.

Will see what transpires and PM those of you that have offered advice

[isleaiw1]

If you go down the umbrella co route apart from sending them some info so they can bill and pay you your money most tax efficiently, it is like being salaried. If you aren't sure if interim is the route for you always best to start this way - simple and no limited company to have to dissolve later if you go back to salaried work.

[225]

Originally Posted by JLR1969

Thank you all for your guidance very much appreciated. I reckon I would rather just find a job that's salaried seems easier.

Will see what transpires and PM those of you that have offered advice

Before you do, just think of the salary you would need to get to even come near the take home of that daily rate.....

[JLR1969]

Originally Posted by 225

Before you do, just think of the salary you would need to get to even come near the take home of that daily rate.....

The type of role would normally come with the following if it was a permanent role.

£65,000 basic
10%-15% bonus
£6,000 car allowance
Pension at 5% ish
BUPA

The above is fairly standard for a senior commercial role

[Watsey]

Some very rough and ready figures by way of a comparison :

Salaried role :

Total gross income = £80,750 (assuming 15% bonus)
Total tax due = ~£ 21,000 (26% overall)
Total nett income = £59,750
Effective nett day rate, assuming 228 working days = £262
You'd also have additional tax to pay on your P11D benefits, which would reduce your effective nett day rate even further. Round it off and call the nett effective day rate £250.

Depending on how much nett income you need to draw, i.e. whether you have dependents and whether your partner works, you could be far better off operation as an Interim through a well managed Limited Company.

Also bear in mind that the earning potential of 5% pension contributions are not going to provide much when you want to hang up your boots....

[isleaiw1]

Assuming you can get past IR 35 (harder to insist on your own contract terms with a big corporate who will have standard contractor contracts) there is then limited scope for tax minimisation if you don't push the rules too much. With the changes to dividend taxation the benefits of contracting are being marginalised. If the role requires less travelling to a perm place of work and more travelling to sites for which employer is paying expenses, the tax benefits can be reduced further.

I have done both recently and was quite happy to trade my 600 plus a day interim contract for a perm role with bonus up to 50%, emp pension contributions of 15% and being paid when on holiday!

[JLR1969]

Thanks Guys

More food for thought.

[Ajs_435d]

It doesn't seem like you know what your doing/letting yourself in for - no offence.

As above you'll need to setup a limited company employ an accountant as it isn't as cut and dry saying x = y, you need to take into VAT too. You cannot take out money out of a business accountant and not pay tax over a threshold. And new rules coming in that reduce your income.

IR35 don't worry about that, primarily for what I call pseudo staff working at the same place for a while if your moving around from contacts it's ok.

Long and short of it, if this is a one off whim don't bother if you plan on doing contacting setup a limited company and continue should be worth it.

Roughly a 45 per hour is a 60-65k staff job

[JLR1969]

Originally Posted by Ajs_435d

It doesn't seem like you know what your doing/letting yourself in for - no offence.

As above you'll need to setup a limited company employ an accountant as it isn't as cut and dry saying x = y, you need to take into VAT too. You cannot take out money out of a business accountant and not pay tax over a threshold. And new rules coming in that reduce your income


IR35 don't worry about that, primarily for what I call pseudo staff working at the same place for a while if your moving around from contacts it's ok.

Long and short of it, if this is a one off whim don't bother if you plan on doing contacting setup a limited company and continue should be worth it.

Hi Mate

You are right I have no idea about the implications of Interim work hence why I started this thread.

From what I have read as a one off interim position I cannot be bothered to set everything up for potentially 6 months

Going to keep looking for a permanent job

[Ajs_435d]

Good luck hope you find a job.

No biggie setting up a company it'll cost you for that and accountant for a year roughly 1.5k for first year, small amount of that setup fees etc.

[isleaiw1]

Originally Posted by JLR1969

Hi Mate

You are right I have no idea about the implications of Interim work hence why I started this thread.

From what I have read as a one off interim position I cannot be bothered to set everything up for potentially 6 months

Going to keep looking for a permanent job

As a one off use an umbrella company, they do all the tech stuff and you fill in a few forms each week.

If you like interim work then set up own limited company next time, if you don't no real hassle or effort to unwind into a perm role.

Pm if you want to know more - I have done interim work for a few years and gone back to perm jobs or ftc on the payroll in between a few times!

[JLR1969]

Originally Posted by isleaiw1

As a one off use an umbrella company, they do all the tech stuff and you fill in a few forms each week.

If you like interim work then set up own limited company next time, if you don't no real hassle or effort to unwind into a perm role.

Pm if you want to know more - I have done interim work for a few years and gone back to perm jobs or ftc on the payroll in between a few times!

Nice one thanks mate!