Hi
I currently work as a PAYE employee earning £47,000 per annum full-time. I understand the difference between inside IR35 and outside IR35 but not had any experience in this.
I have a potential opportunity for a part-time role INSIDE IR35. It is £500 per day, 2 days per week. I will need to use an umbrella company.
My understanding from the online calculators is as follows:
Current PAYE full-time job:
After 5% pension contributions, my monthly net take home on £47,000 gross salary is £2,842.00 per month.
Inside IR35 2 day per week job:
Without pension contributions, my monthly net take home is £2,918.89 per month working 2 days per week.
Having spoken with the recruitment agency, I am trying to understand a few things and wondered if anyone could help me:
- I believe the day rate of £500 includes rolled up holiday - is that correct?
- The recruitment agency made a comment along the lines of 'if they recruited somebody internally it would be around £70,000k salary'. But surely paying £500 per day is quite high for 2 days per week. It almost seems too good to be true compared to my salaried wage.
- Do the calculations above seem correct for the day rate and all deductions etc?
I am looking to go part-time anyway so this would be a perfect opportunity.
Thank you :)