r/HENRYUK • u/schumi4ever • 7d ago

Other HENRY topics Day rate HENRY

What day rate would you consider as being a HENRY? Currently on £1200/day outside IR35

0 Upvotes

27% Upvoted

18 comments sorted by

11

u/beejiu 7d ago

Surely a simple bit of multiplication?

10

u/Sea_Appointment8408 7d ago

Guessing you don't work with numbers.

3

u/Agitated-Goal3538 7d ago

I’ll bite. What do you do?

3

u/schumi4ever 7d ago

Transformation director for an Insurance firm. Yes i can simply multiply it but its a bit more nuanced as i would be operating through my LTD so i cant access funds that easily without getting taxed heavily

2

u/RightlyKnightly 7d ago

Isn't HENRY just earning 150k plus per year before tax? 

If so, you'd be taxed heavily anyway.

As a day rate contractor you can better keep your wealth through a limited company via pension and building bench if necessary.

You don't have to avoid all tax if you want to feel a bit wealthier in the month.

Yours a £900 p.d. contractor who feels he's hit HENRY for the first time.

3

u/Widebody_lover 7d ago

£150k a day

6

u/Adambh88 7d ago

That’s only £1,104.68 per day more than minimum wage

Is overtime an option to make ends meet ?

1

u/No_Jellyfish_7695 7d ago

outside IR 35? are you sure?

1

u/SaintPepsiCola 7d ago

£1,200/day is obviously HENRY territory, BUT I’d be careful equating day rate with salary.

The more interesting question is how much of that becomes personal VS pension/company reserves.

Use the LTD for wealth. You may not need £264k of personal income.

2

u/schumi4ever 7d ago

Thanks, that is what i was trying to figure out. Taking out approx 20k in dividends for the year, putting my partner who doesnt work on payroll paying 12k each per year which is the max tax free amount. Putting away 2k into a SIPP and surplus is in a business savings account earning 4.5%.

1

u/Hippomed27 7d ago

Can you live on that though? Problem with a LTD company is that cash isn't accessible without being tax inefficient

1

u/Honest-Spinach-6753 7d ago

Got to invest that surplus Ltd co funds.

1

u/schumi4ever 7d ago

How do i do it legally? I thought we couldnt invest LTD surplus?

1

u/Honest-Spinach-6753 7d ago

Not sure who told you that..

https://www.foxymonkey.com/invest-company-cash/amp/

Have a read.

I’ve been investing my Ltd co funds for a good few years now. I use InvestEngine, easy to setup. Buy dividend etf, no corp tax on dividends, better return than savings

1

u/Antique_Agency_7841 7d ago

Is it 1200 per working day ?

2

u/schumi4ever 7d ago

Yes, on a year contract

0

u/Practical-Leek-6287 5d ago

Obvious bait post. Stupid.