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The problem with contracting is nobody is paying into your pension, you have no paid leave and because of the (real or perceived) lack of security it is extreme
by SandB0x 11y ago
The problem with contracting is nobody is paying into your pension, you have no paid leave and because of the (real or perceived) lack of security it is extremely difficult to get a mortgage and harder to even rent.
- peteretep 11y ago> The problem with contracting is nobody is paying > into your pension You can take up to £40k out of your Ltd company tax-free in to your pension. > you have no paid leave 220 days is the magic number to use to value your contracts. Public holidays, some leave, weekends, etc. 400 * 220 = £88,000. Plus flat-rate VAT bonus. Plus you pay yourself in dividends. Plus you claim some sensible expenses, and shirk your NIC obligations, and your take-home is about £6,000, which is actually equivalent to earning £112,000. With four weeks of leave included.