Applied for a FTC in england and put salary expectation as 85k. This would put me on about 4k more than I currently earn so I’m worried I’ve gone in too low. I read up on IR35 so want to know if this would be my salary after the employer has paid NI and tax or am I going to be a 2K up from current salary with no security?
Median daily rate outside London is £550 a day for this role but I think FTC would be lower. Any advice please?
TIA.
Edit: thank you to everyone who has explained IR35 to me, the link to the contractors sub Reddit and for taking the time to advise me. I am truly grateful and now feel more confident. If they call me for an interview (I was asked to apply) I will keep you informed on the outcome.
7 comments
I would expect this to be the gross salary so yes, about a £2k increase in take home but no employee benefits.
So overall a less valuable package than you currently have.
Inside IR35 means your contract rate needs to be paid as if you were an employee of your own company, i.e. All payments paid to you subject to PAYE and NI, like a normal employee.
Paid like an employee, none of the benefits!
Inside IR35 – you will be treated as an employee while contracting.
Ideally (financially at least) you want to be contracting outside of ir35 so you can pay yourself higher dividends and be more tax efficient. Otherwise you want to probably be an FTE unless you really are fine being within IR35 & contracting
Why did you ask for £380 when you know the median rate is 550?
> What is inside IR35?
Doom and despair.
You’ll probably lose money on this as you’ll be paying your own employer’s NI and there will be a small fee from the umbrella company that you’ll inevitably have to work under. You’ve just exchanged a paper 2k for a far worse package.
FTC? Full time contract? That sounds like you are employed so you wouldn’t be classed as Inside IR35 right? If you are Inside IR35 you’ll need a brolly most likely.
I think you are confusing terms here. Check over on r/ContractorUK/