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COMPARISON OF
PROSPECTIVE RETURNS
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Enter your financial circumstances here:
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Expected contract earnings in next twelve months
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% of cost to
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Risk
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Based on this information, your prospective returns will be:
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Cash
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employer
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level
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Probiz Contracts
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LOW
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PAYE
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LOW
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One man limited company
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HIGH
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Self employed
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HIGH
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NOTES:
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1
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The
risk level is low for both PCL and PAYE because both positions are employed
and income is fully taxed. All
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risks lie with the employer.
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2
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The
risk level is high for one man limited company and self employed because of
IR35 and reclassification risks,
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where the risks lie with the
contractor.
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3
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The
% return is lower for PAYE because the employer has to pay employers NI on
top of your salary - money
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that could be paid to YOU!
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4
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Calculations assume a limited
company salary of £6,000 and third party expenses of £5,000 (accountancy,
insurance,.
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stationery etc)
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Disclaimer - These figures are estimates only, based on 2007/08 tax/NI
rates and the information provided, and are in no way guaranteed
returns.
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Many variables including
turnover, PAYE deducted from salary and current year earnings from other
sources may affect net returns.
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Net returns for company
and self-employed are after paying expenses, since these sums are not
available to the contractor.
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