Top UK contractors pay 20% less tax by using a contractor calculator
UK Contractors use a Contractor Calculator to reduce tax and increase profits.
High earners in the UK such as UK contractors have been taxed quite heavily by the HMRC, and this is precisely why they turn to using a contractor calculator.
Here's the thing, using a contractor calculator helps you to reduce your costs by paying less tax, which means you earn more take home profit.
What is a Contractor Calculator?
Top contractors will use contractors calculators all the time to discover the potential tax savings on a particular contractor tax solution, these calculators are found online and served by tax avoidance systems that are based in the Isle of Man
What info can you get from a Contractor Calculator?
The Contractor Calculator will give you info such as an illustration based on the contractors daily pay rate in most cases a contractor who uses the calculator needs to enter their email address and click on a authorization link to be able to get a customized report of their projected savings, and an overview of how the relevant tax solution works
Normally a contractor calculator will provide a minimum of this basic information:
A personalised illustration or report on how much a contractor can save on their contractor tax solution.
an overview of the tax solution including faq and just how the system works.
These tax avoidance systems are legal in the sense that even though HMRC prefers you did not pay less tax, they cannot do much about it because these tax solutions in many cases are carefully designed to make the most of maximum tax leveraging provided through trusts along with other mechanisms.
Where do contractors find Contractors Calculators?
contractors usually find these contractor calculators by doing a search online, in google, there are also a few on facebook or even a iphone app which i managed to come across.
The one that I use and recommend would be the contractor calculator online contractor tax solutions.
contractor calculators are usually a simple email form, for a contractor to discover just how much tax they could save they have to put in their name, a valid email address and also their daily pay rate... in this example you also get a box where you can ask any questions you have, which will be answered by the staff who work out your personal report(one would hope)
Why Do Contractors Use a Contractor Calculator?
Contractors will use a contract calculator for any variety of reasons, towards the best of my knowledge this might be because they can make significant savings on the tax bill, say for example a contractor can come home with 87% of his contract value by using some of these contractor tax reducing services - so it would be mostly a purely logical profit motive.
Secondly lots of British IT contractors feel (possibly justified) that they are penalised for being high earners, as in the UK they are susceptible to some of the worst/highest taxes in the world- these are individuals who have spend a massive amount of time and money to perfect their field of expert knowledge and earn well - only to have a huge quantity of this swallowed in what they feel is unfair tax levels that penalise high earners. The HMRC has in the last few years even introduced ever new measures to test force contractors to pay for more tax - eg: the IR35 law which most contractors feel is really unfair. In this situation contractors get treated and forced to pay taxes like a normal employee. with no benefit of permanent employment.. quite simply they are contractors, contracts end at a moment, and they have NO job security - this is why contractors get paid more, along comes the HMRC plus they legislate a law forcing contractors operating limited companies and working for 1 client - to now pay PAYE amounts of taxes.(This is financial suicide for most contractors)
Using the systems supplied by the operators of the contractor calculator, contractors could avoid IR35 entirely particularly if the operators are using a Self Employed model and a trust, as IR35 applied only to limited companies.
Most operators of a contractor calculator also do tax statements for contractors removing a significant administrative burden in the contractors life.
Who a contractor calculator benefit most:
Who is it for?
not risk averse
earning about 250 per day minimum (average contractor is all about 400 sterling a day)
Mostly the calculator will only benefit contractors who are not totally risk averse, because there is always a chance the HMRC could make a new law (and it has in the past made laws and then gone after 'back taxes owed in arrears' in a sense saying 'hey you were on this tax avoidance system, now you owe us for that 5 years you were onto it chum' - and they have taken several contractors to court just like this, - however they have been losing most of these cases.)
a contractor calculator benefits both contractors who choose to make use of the operators service and of course the operators, who often charge fees varying between 9 -15% of the gross billing from the end client.
High earners in the UK such as UK contractors have been taxed quite heavily by the HMRC, and this is precisely why they turn to using a contractor calculator.
Here's the thing, using a contractor calculator helps you to reduce your costs by paying less tax, which means you earn more take home profit.
What is a Contractor Calculator?
Top contractors will use contractors calculators all the time to discover the potential tax savings on a particular contractor tax solution, these calculators are found online and served by tax avoidance systems that are based in the Isle of Man
What info can you get from a Contractor Calculator?
The Contractor Calculator will give you info such as an illustration based on the contractors daily pay rate in most cases a contractor who uses the calculator needs to enter their email address and click on a authorization link to be able to get a customized report of their projected savings, and an overview of how the relevant tax solution works
Normally a contractor calculator will provide a minimum of this basic information:
A personalised illustration or report on how much a contractor can save on their contractor tax solution.
an overview of the tax solution including faq and just how the system works.
These tax avoidance systems are legal in the sense that even though HMRC prefers you did not pay less tax, they cannot do much about it because these tax solutions in many cases are carefully designed to make the most of maximum tax leveraging provided through trusts along with other mechanisms.
Where do contractors find Contractors Calculators?
contractors usually find these contractor calculators by doing a search online, in google, there are also a few on facebook or even a iphone app which i managed to come across.
The one that I use and recommend would be the contractor calculator online contractor tax solutions.
contractor calculators are usually a simple email form, for a contractor to discover just how much tax they could save they have to put in their name, a valid email address and also their daily pay rate... in this example you also get a box where you can ask any questions you have, which will be answered by the staff who work out your personal report(one would hope)
Why Do Contractors Use a Contractor Calculator?
Contractors will use a contract calculator for any variety of reasons, towards the best of my knowledge this might be because they can make significant savings on the tax bill, say for example a contractor can come home with 87% of his contract value by using some of these contractor tax reducing services - so it would be mostly a purely logical profit motive.
Secondly lots of British IT contractors feel (possibly justified) that they are penalised for being high earners, as in the UK they are susceptible to some of the worst/highest taxes in the world- these are individuals who have spend a massive amount of time and money to perfect their field of expert knowledge and earn well - only to have a huge quantity of this swallowed in what they feel is unfair tax levels that penalise high earners. The HMRC has in the last few years even introduced ever new measures to test force contractors to pay for more tax - eg: the IR35 law which most contractors feel is really unfair. In this situation contractors get treated and forced to pay taxes like a normal employee. with no benefit of permanent employment.. quite simply they are contractors, contracts end at a moment, and they have NO job security - this is why contractors get paid more, along comes the HMRC plus they legislate a law forcing contractors operating limited companies and working for 1 client - to now pay PAYE amounts of taxes.(This is financial suicide for most contractors)
Using the systems supplied by the operators of the contractor calculator, contractors could avoid IR35 entirely particularly if the operators are using a Self Employed model and a trust, as IR35 applied only to limited companies.
Most operators of a contractor calculator also do tax statements for contractors removing a significant administrative burden in the contractors life.
Who a contractor calculator benefit most:
Who is it for?
not risk averse
earning about 250 per day minimum (average contractor is all about 400 sterling a day)
Mostly the calculator will only benefit contractors who are not totally risk averse, because there is always a chance the HMRC could make a new law (and it has in the past made laws and then gone after 'back taxes owed in arrears' in a sense saying 'hey you were on this tax avoidance system, now you owe us for that 5 years you were onto it chum' - and they have taken several contractors to court just like this, - however they have been losing most of these cases.)
a contractor calculator benefits both contractors who choose to make use of the operators service and of course the operators, who often charge fees varying between 9 -15% of the gross billing from the end client.