Semi retirement

I’ve never been able to get my head around this.
My rate is going down by X% and I’m not working for that pittance, so I’ll choose to have no income instead.
Close, but no coconut. You are right 57% of £100 is better than 100% of nothing.

However, I'm in the fortunate position of having enough set aside to choose not to work.

If I start to draw down one of my pensions and live off my buy-to-let income rather than putting it in to pensions I will be £200 a week behind what the new IR35 take home is.
I've decided the level of BS and politics involved in the contract I was on is not worth £200 a week. (200/37 = £5.40 an hour)

I'm having the Summer off, if I hate my extra liesure time, or get bored I'll look around for something new. (I do not expect this to happen)

58 is three years later than I planned to retire but I don't see that as a failure (an expensive divorce upset the master plan).

Maybe Jason Statham should play me in the movie rather than Daniel Craig.
 


Close, but no coconut. You are right 57% of £100 is better than 100% of nothing.

However, I'm in the fortunate position of having enough set aside to choose not to work.

If I start to draw down one of my pensions and live off my buy-to-let income rather than putting it in to pensions I will be £200 a week behind what the new IR35 take home is.
I've decided the level of BS and politics involved in the contract I was on is not worth £200 a week. (200/37 = £5.40 an hour)

I'm having the Summer off, if I hate my extra liesure time, or get bored I'll look around for something new. (I do not expect this to happen)

58 is three years later than I planned to retire but I don't see that as a failure (an expensive divorce upset the master plan).

Maybe Jason Statham should play me in the movie rather than Daniel Craig.
I’ve just put Timmy Mallett on standby.
 

Weremuthe

Striker
When I was working in the city of London commissioning systems (after the arse fell out of engineering work) there were all sorts of scams - e.g. getting paid in Zimbabwean currency as a loan and not having to pay it off as hyper-inflation made the amount borrowed in 3 moths, registering your company in the Turks & Caicos islands but when Gordon Brown introduced that stake holder grant for new borns guess who was at the front of the queue applying for it - yes the same scammers? The cleaners used to pay more in tax than them.
 

DoctorMick

Striker
The new IR 35 legislation has tipped me over the edge.

I've had my first three payslips under the new regime and I'm out.

Under my limited company I keep 78% of the hourly rate I charge to clients, after accountant fees, corporation tax, liability insurance, pension contributions.

Under IR35 (Umbrella construct) I keep 57% of the hourly rate I charge after NIC's, PAYE, Pension, apprenticeship levy ffs.

I'm not doing the same job for 20% less in my pocket so I gave my one week notice today.

I have enough salted away to have a wee sabbatical and review what work I want to take on in the Autumn when hopefully covid is under more control.

If I can manage on a reduced spending regime I may just keep going until my pensions kick in in 5 years. Do a few auditing jobs outside IR35 if any big expenses come up but I'm basically now semi retired.
Time now to improve my golf handicap and my nascent guitar skills, maybe try and get a bit fitter too.

I expect Daniel Craig will play me in the movie.
I’m outside of ir35 through a limited company. How the fuck do you keep 78%????
 
The new IR 35 legislation has tipped me over the edge.

I've had my first three payslips under the new regime and I'm out.

Under my limited company I keep 78% of the hourly rate I charge to clients, after accountant fees, corporation tax, liability insurance, pension contributions.

Under IR35 (Umbrella construct) I keep 57% of the hourly rate I charge after NIC's, PAYE, Pension, apprenticeship levy ffs.

I'm not doing the same job for 20% less in my pocket so I gave my one week notice today.

I have enough salted away to have a wee sabbatical and review what work I want to take on in the Autumn when hopefully covid is under more control.

If I can manage on a reduced spending regime I may just keep going until my pensions kick in in 5 years. Do a few auditing jobs outside IR35 if any big expenses come up but I'm basically now semi retired.
Time now to improve my golf handicap and my nascent guitar skills, maybe try and get a bit fitter too.

I expect Daniel Craig will play me in the movie.
At least in next furlough you might get something if you’ve paid in
 

DoctorMick

Striker
Look at me, my rates aren’t competitive now there’s a level playing field
It’s not level at all, it’s shifted from one extreme to the other imo. Outside of ir35 a lot of contracts don’t pay enough tax, inside they don’t get any benefits a perm employee would but don’t really get paid more either. A fair system would land somewhere in the middle.
 

MonkeyLove

Striker
40% TAX AND 13% NI - standard rates for PAYE once on the higher rate then pension on top of that

Its 12% up to 50k then 2% so offsets some of the higher tax rate.

I was just thinking the OP wasn’t going to get much sympathy for having to pay tax and taking retirement at 58 (Assuming that’s how old the 63 makes him) Then the fucker pulls out multiple pensions and the cherry on the cake, a buy to let landlord :lol:

I’d quit whilst ahead if I was him
 

The Butcher

Winger
I’m a contractor strughling to get a contract nevermind inside or out of ir35. Coming out with tax comparisons like OP has does us no favours at all with whst is false figure when you take everything into account. Understand why he would jack in tho, so much uncertainty within our industry (engineering) at moment, will take a while to steady.
 

David M

Winger
Close, but no coconut. You are right 57% of £100 is better than 100% of nothing.

However, I'm in the fortunate position of having enough set aside to choose not to work.

If I start to draw down one of my pensions and live off my buy-to-let income rather than putting it in to pensions I will be £200 a week behind what the new IR35 take home is.
I've decided the level of BS and politics involved in the contract I was on is not worth £200 a week. (200/37 = £5.40 an hour)

I'm having the Summer off, if I hate my extra liesure time, or get bored I'll look around for something new. (I do not expect this to happen)

58 is three years later than I planned to retire but I don't see that as a failure (an expensive divorce upset the master plan).

Maybe Jason Statham should play me in the movie rather than Daniel Craig.

Kinell! :lol:
 
Its 12% up to 50k then 2% so offsets some of the higher tax rate.

I was just thinking the OP wasn’t going to get much sympathy for having to pay tax and taking retirement at 58 (Assuming that’s how old the 63 makes him) Then the fucker pulls out multiple pensions and the cherry on the cake, a buy to let landlord :lol:

I’d quit whilst ahead if I was him
He doesn't mention a dog though so he doesn't have it all.
 

Top