Contract adverts quote “outside IR35 day rates” while employers quote annual salaries. Translating between them without a net-first lens invites bad deals. Start from the money that actually clears your current account.
VAT and expenses sit outside PAYE thinking
Registered businesses may add VAT on top of fees; travellers reclaim legitimate expenses before profit.
Keep your model aligned with how your accountant recognizes profit—not every contractor expense matches
day-rate psychology.
Volatile months mean runway matters
A higher headline rate buys cushion when clients delay payment or projects slip. Net parity is necessary,
not sufficient, for financial comfort.
FAQ
Should I include employer NI?
Employer-side costs do not leave your pocket as an employee, but they inform negotiation leverage—track separately.
What if I trade through a Ltd company?
Salary vs dividends splits need a different spreadsheet; this page models sole trader approximations.