[Gllug] [JOB] - Perl developer in Linux environment

[Jason Clifford]

On Fri, 10 Nov 2006, John G Walker wrote:

> About twenty-five years ago, I read an article in which someone had
> calculated that a contractor had to earn about 250% of an employee's
> wage to be on the same real income, due to the factors Jason cited. I
> don't know how that figure stands up now that IR35 is in operation,

If you are caught by IR35 you are only allowed 5% of your income to cover 
all expenses. The rest is treated as employment earnings and you are 
required to pay full income tax, employers NI and employees NI on it.

>From your net income you then need to cover things like pension 
contributions, etc. Don't forget that although a contractor pays full 
employment taxes they will usually be refused any state benefits if they 
are unable to work.

Jason Clifford
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