tax you would payon daily rate contract 450 per day

thebourke

if i was on a daily rate of 450 euro a day...
roughly how much tax would you be paying

looking at an it job abroad that is paying that rate

I cam currently paye and don't have experience of working as a contractor

Geuze

I often wonder how people who can command such high wages can't do fairly simple maths.

450 * 5 days * 48 weeks = 108,000 per annum

Assuming you are single.

https://revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx

There are two main tax rates in Ireland: 20% and 40%

The first 35,300 is taxed at 20%.

(35,300)(0.20) = 7,060
the balance is taxed at 40%
(108,000 - 35,300)(0.40) = (72,700)(0.40) = 29,080
Total tax is 7,060 + 29,080 = 36,140

then your tax credits are deducted, as taught to everybody in JC maths.

Most people are entitled to two tax credits:

personal tax credit = 1,650
PAYE tax credit = 1,650

Tax due is 36,140 less 3,300 = 32,840


Don't forget 4% PRSI = (108,000)(0.04) = 4,320

So we arrive at 32,840 tax plus 4,320 PRSI = 37,160.

Of course, I have not included the USC tax, as it is a pain in the neck to calculate, but here are the rates:


Standard rates and thresholds of USC for 2021
First €12,012 0.5%
Next €8,675 2%
Next €49,357 4.5%
Balance 8%

Geuze

So on the 108k salary, the tax and PRSI is 37,160.

That is a 34.4% effective tax rate, excluding USC.

Treppen

thebourke wrote: »

if i was on a daily rate of 450 euro a day...
roughly how much tax would you be paying

looking at an it job abroad that is paying that rate

I cam currently paye and don't have experience of working as a contractor

If it's abroad are you going to be living abroad?

If not then set yourself up as a sole trader for contracting. Then expenses come into play . Unless of course you are going through an agency and they insist on managing your contract/tax.

Go to taxassist , pay a few hundred euro (which you'll get tax relief on too). They'll sorry you out no worries.

storker

It depends on what the situation is regarding employer PRSI or its equivalent in the country the OP is considering. Contractors in Ireland often have to pay this themselves out of their daily rate, so if we assume an average month of 20 working days, then at €450 per day you might take home +/- €4,900 per month after deducting the fee for whoever it is who handles your wages, if applicable.

(This is according to the tax ready-reckoner of the accounting company that manages my own contract payments.)

Seve OB

Geuze wrote: »

I often wonder how people who can command such high wages can't do fairly simple maths.

450 * 5 days * 48 weeks = 108,000 per annum

Assuming you are single.

https://revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx

There are two main tax rates in Ireland: 20% and 40%

The first 35,300 is taxed at 20%.

(35,300)(0.20) = 7,060
the balance is taxed at 40%
(108,000 - 35,300)(0.40) = (72,700)(0.40) = 29,080
Total tax is 7,060 + 29,080 = 36,140

then your tax credits are deducted, as taught to everybody in JC maths.

Most people are entitled to two tax credits:

personal tax credit = 1,650
PAYE tax credit = 1,650

Tax due is 36,140 less 3,300 = 32,840


Don't forget 4% PRSI = (108,000)(0.04) = 4,320

So we arrive at 32,840 tax plus 4,320 PRSI = 37,160.

Of course, I have not included the USC tax, as it is a pain in the neck to calculate, but here are the rates:


Standard rates and thresholds of USC for 2021
First €12,012 0.5%
Next €8,675 2%
Next €49,357 4.5%
Balance 8%

Lol, while I totally agree with your very first line, you wasted your time with the rest because.......the person is talking about going abroad! Lol
Where?
When?
How long for?
So many questions really.

CharlieHaghy

It’s safe to say the op is a Jerry mac on the corona and is a decimal point out.

Geuze

Seve OB wrote: »

Lol, while I totally agree with your very first line, you wasted your time with the rest because.......the person is talking about going abroad! Lol

I see what you mean now.

I note that IT was not capitalised, that is why I missed it.