0800 089 0110
1st Option
Search
1st Option 1st Option 1st Option
1st Option
Recruiter Zone
Refer a Candidate
Limited Company vs Umbrella
Recruiter Guidance
Earnings Calculator
Events


Latest News

Name
Number
Email
Helpdesk


Bookmark and Share 		Home > Recruiter Zone > Earnings Calculator

Recruitment Professionals Refer a Client


Earnings Calculator

Do you want to calculate what your candidates yield from their contract engagements could be?

The earnings calculator below can be used to offer candidates an idea of the potential yields that they might achieve from their contract arrangements. Simply input the daily rate into the box, and click "Go" for a quick and easy comparison – based upon our assumptions (see below). Bespoke advice for candidates is available by clicking Contact Us .

Net Return

45k 41k 35k 32k Ltd Co (IR35 Pass) Ltd Co (IR35 Fail) Umbrella PAYE


Why use a Limited Company?
1. Greater returns – thanks to the flexibility of wealth planning and tax relief, forming and administering a limited company structure will return significantly more take home pay.

2. Quicker payments – all funds are paid directly into the freelancer’s business bank account rather than being channelled via a 3rd party.

3. More control – a director of a limited company can elect to pay himself a realistic salary, draw down money from the company in a tax efficient way, use the structure to provide a comprehensive set of appropriate benefits and retain full control at all times.

4. Eradicates payment issues – without the need for funds (and the accompanying data) to pass via a 3rd party umbrella, matters such as banking delays, payment data discrepancies and human error will not interfere with the receipt of funds.


These figures are for illustration purposes only. They make various assumptions (which have been consistently applied) about expenses claimed, days and weeks worked, declared salary and level of pension contributions including:
  • A salary of 35% of daily rate or £24,000, whichever is the lower
  • A pension contribution of 12% of turnover
  • Travel expenses of £150 per week
  • Other expenses of £5,900 per year
  • Application of the VAT Flat Rate Scheme at the IT Contractor rate
  • No allowance has been made for Income Sharing
IR35 status is a consideration for each separate assignment and professional advice should always be obtained.

For a personal consultation specific to actual client circumstances, please contact the 1st Option Helpdesk.


1st Option