Take home for a €400 daily rate

S

SirMille

Guest
Hi guys,

Apologies if this isn't posted in the right place.

I've always been a permanent employee until being made redundant recently.

I now have a deeper understanding and appreciation of dole money, as I have a family and a mortgage to support.

A company has asked me if I'd be interested in a six month contract, paying 400 per day.

My questions are this
1/ Is there a calculator on the web, where I can type in this detail and a few others to give an indication of my monthly net income
2/ Would it be more beneficial to take the less well paid permanent role (with the caveat that the role will end in six months), so when the job ends in six months I can claim dole again? Is this morally okay/legally?

Thanks everyone
 
very rough idea for you would be your last payslip.

find the weekly or monthly cut off point
find the week or monthly tax credit

400 x 20 days = gross
tax would be
Monthly cut off point x 20%
gross - monthly cut off point x 41%
less credit

example

400 x 20 = 8000

tax
2710 x 20% = 542
8000 - 2710 = 5290 x 41% = 2168

Gross Tax 2710 - credit 500 = 2210 total tax

therefore 8000 - 2210 = 5790

Of course all of the above calculations are out the window depending on how long you are unemployed, how much you earned before unemployment this year etc.

PRSI as self employed paid yearly so you'll have to look that up.

For the couple of hundred it would be well worth your while getting an accountant on board.
 
When I used to contract I used to go on the rule of thumb of 18.5 billable days per month. This takes into account bank hols, sick leave, holidays etc.

So 18.5 x 400 = 7400

7400 x 12 = €88800

If you need a LTD company then I would allow say €2000 for accounting costs.

Giving you approx €86k per year.

If you then use the tax calc here:

http://www.taxcalc.eu/

You will be able to calculate approx take home. I'm not sure your marital status etc but if you are single this would equate to approx:

Monthly take home pay. (Single)
Selected Tax year is 2008
Gross Take Home Pay = € 7166.6665
Tax = € 2013.8334
Take Home Pay after Tax = € 5152.8335
Less PRSI = € 299.3557
Net take home pay per month = € 4853.4775
 
bacchus said:
There is a tax calculator
Click to expand...

It looks like that calculator is for full time permies.

Is there a calculator where I can type in "€400 per day"
and it'll tell me what my net monthly income will be?
 
Thanks BetterBiz AND Davidoco

can I increase that by claiming expenses too?

Cheers
 
SA_Acc said:
Sir Mille drop me a line and we can discuss expenses and contract work. Do contract work myself so know a lot of the pitfalls and good points...
Click to expand...

why not discuss it on the forum like everyone else ? funny a 1 post person requesting someone about to setup in contracting to request private contact - are you involved in any umbrella/ setups/accountancy type business ?

OP - as a rule of thumb on that type of rate you should expect to retain approx 75 - 80% of your gross depending on what type of expenses you have. Much better off than on the dole. What type of industry do you work in ? I've found (being an IT contractor) that contracts tend to find me when I become available (due to number of other contractors I've worked with and all contractors look out for each other spreading word about availability/ open rols etc.) so it would be easier to find work from a contrct rather than from unemployment.
 
You may wish to check what impact paying PRSI at Class S (self-employed) may have on future SW claims - Class S contributions are not reckonable for Jobseeker's Benefit so you could find that in the future you hadn't enough reckonable contributions to qualify. You would then have to apply for Jobseeker's Allowance, which is means-tested.
 
SA_Acc said:
NAI not involved in umbrella/setups/umbrella at all.... if you must know I have my own I.T company.....

I have a good accountant who has advised me very well on my tax etc.

Happy now NAI????????
Click to expand...

shall we put down your bad manners and über-defensive attitude to the fact that you're new to aam? I merely pointed out that most people give answers on the forum as opposed to privately (given that the query is posted publiclY. This allows all users the benefit of your experiences.

You will find that most posts like yours will be questioned by someone given the amount of advertising etc that some people try to do.

Ps thanks for clarification
 
Don't need to limit yourself to an accountant. You can use a qualified tax advisor also.

Some, particularly those starting out in independent practice can be quite reasonable.

davidoco said:
very rough idea for you would be your last payslip.

find the weekly or monthly cut off point
find the week or monthly tax credit

400 x 20 days = gross
tax would be
Monthly cut off point x 20%
gross - monthly cut off point x 41%
less credit

example

400 x 20 = 8000

tax
2710 x 20% = 542
8000 - 2710 = 5290 x 41% = 2168

Gross Tax 2710 - credit 500 = 2210 total tax

therefore 8000 - 2210 = 5790

Of course all of the above calculations are out the window depending on how long you are unemployed, how much you earned before unemployment this year etc.

PRSI as self employed paid yearly so you'll have to look that up.

For the couple of hundred it would be well worth your while getting an accountant on board.
Click to expand...
 
You need to confirm if the company are proposing to treat you as a PAYE employee or an independent contractor. If they are proposing to treat you as a contractor, there is that Revenue might just deem you to be an employee anyway.
 
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