Financial Profile - Contractor

Your complete financial profile is below. We have split your profile into sections, to review any section, just expand that section by clicking the "+" expand buttons.

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Your Personal Income Summary

Your current net income per month is £2,658
This is 77% of your gross revenue.

Other Calculations: Try other rates with the Contracting Calculator. Find the rate to earn your desired income with the Target Income Calculator.

How Rate Changes Would Effect Your Income

If your rate increases/decreases by £1 per hour your net income would increase/decrease by £110 per month
If your rate increases/decreases by £5 per hour, your net income would increase/decrease by £550 per month.

Other Calculations: Compare two contract rates with the Contract Comparison Calculator.

Your Revenue & Profit Summary

Your gross revenue is £41,250
Deducting expenditure of £11,128 results in a profit of £30,121
This profit is 73% of your revenue.

Your Complete Tax Profile

Company taxes are 15% of revenue:
Employers NI = £128
Corporation Tax = £6,024

Personal taxes are 0.48% of revenue:
Dividend tax = £0
Employees NI = £92
PAYE = £104

Your IR35 Status & Issues

You are currently outside IR35 [Change to inside]
If you get caught by IR35, your monthly net income would decrease by £610 (22%) to £2,047
This decrease is equivalent to a current rate decrease of £4.68 (18%) to £20.

Other Calculations: For more details about the effects of IR35 use the IR35 Calculator. Compare taxes for inside/outside IR35 using the IR35 Taxes Calculator

Your Pension Options

The tax man will fund up to 20% of a pension for you!
You can efficiently contribute up to £300 per month into a pension, of which the tax man pays £60
For each £100 contributed, your take home pay only reduces by £80. The tax man pays the rest!

Other Calculations: For more details use the Contractor Pension Calculator. To discuss pension advantages with an advisor use the Pension Finder

Permanent Employment Options

If you decided to take a permanent role, you would need to command an annual gross salary of £43,604 in order to to earn the same as you currently do contracting.

Other Calculations: Try out other rates using the Contracting to Permanent Calculator. Calculate net income from a salary with the Permanent Salary Calculator

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Solutions for Contractors:

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Related Guides

Financial impact of IR35 on contractors

Negotiating Your Initial Rate – Tips for Contractors

Preparing and Negotiating a Contract Renewal

Starting Contracting - Steps to become a contractor

Tips For Long Term Successful Contracting

Related Calculators

Contract Comparison Calculator

Target Income Calculator

Contracting To Permanent Calculator

Contractor Calculator

IR35 Calculator

Latest Site Updates

ContractorCalculator: Contracting news in brief

News this week includes a bumper crop of mostly positive economic data for contractors; ESC C16 deadline; & HMRC starts new anti-tax-cheat campaign.

Contractor ESC C16 options for tax efficient limited company closure by 1 March 2012

Contractors have time to close their contracting business tax efficiently using ESC C16 before new rules and a £25k cap come into force on 1 March.

Project management contractor does it ‘by the book’, literally, to win first contract

Project management contractor Ken Burrell won his first contract, and just secured his first renewal, by acquiring & applying new contracting skills.

ContractorCalculator Market Report February 2012

Contractors received a PR boost in Davos and have a target rich contract market if they can pick the winning sectors of the UK’s two-speed economy.

Twitter

ContractorCalculator: Contracting news in brief http://t.co/4SobnOdh
23 hours ago
UK manufacturing output rises http://t.co/R0dzpXWB and trade deficit improves http://t.co/EryNWZ69 according to ONS December 2011 data
Thu, 09 Feb 2012
HMRC inconsistency: Redknapp's misfortune was to be a private individual and not a large company. http://t.co/vcz43CvZ via @TheIndyNews
Thu, 09 Feb 2012
Contractor ESC C16 options for tax efficient limited company closure by 1 March 2012 http://t.co/QXDaShgU
Thu, 09 Feb 2012
Good news for financial IT contractors London's financial sector bounces back in Jan: Morgan McKinley Employ Monitor http://t.co/38nKDOaC
Thu, 09 Feb 2012
HMRC extends anti-avoidance campaigns to construction trades and traders using new online search technology http://t.co/walUSlzX
Wed, 08 Feb 2012