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In the UK, if you're a contractor caught by IR35 and earn £600 per day, your effective tax rate is 40% if the client allows you to engage using your Ltd. compan
by mutatio 5y ago
In the UK, if you're a contractor caught by IR35 and earn £600 per day, your effective tax rate is 40% if the client allows you to engage using your Ltd. company. If you use an umbrella you'll be even worse off. Net income from the arrangement would be £69,925 based on 190 days billed.
- rogual 5y agoYes, it's very hostile to independent contractors, especially with the new rules this year. I'm not a conspiracy guy, but it's amusing to note that Rishi Sunak, under whom the changes came in this year, is related (son-in-law) to a cofounder of IT consulting behemoth Infosys.