Wednesday, March 2, 2011

Contractor Calculators

A contractor is defined as a person or firm that contracts to supply materials or labor on a fixed rate. A contractor calculator is also known as Limited Company Calculator. It is an online tool that lets you compute for your net income from a contract. You need to enter your hourly rate and IR35 status and the Contactor Calculator does the rest.

Free contractor calculators can be secured online to give you illustrations of the possible amount a contractor could take from their contracts. It can be used to obtain up to 48% tax relief for contractors. Using the Contractor Calculator lets you transform your taxes to income and reduce the pains of IR35.

Full tax planning is assumed for working through limited companies in some of these calculators. Contractors working through their own limited company usually take home between 75% and 80% of their contract value on the average. It is a means to estimate your take home pay earned from a Limited Company or Umbrella Company and answers how much you earn as a contractor.

These financial calculators are recommended for contractors, freelancers and consultants. It can be used to calculate income taxes, net pay and contractor taxes. You have to key in the Yearly Contract Revenue, Aggregate Gross salaries, Annual Expenses including pension contributions, subscriptions and travel plus any Additional Annual Income which includes but not limited to rent received and bank interest. Supply all these data and the Contractor Calculator will do the rest for you.

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