Do I.T. contractors pay more tax?

[Neil72uk]

I have just started an I.T. contract and wanted to know if I will end up paying more tax as a result of this (I'm currently using the services of an umbrella company).

I was told that claiming expenses would lessen the tax burden. Thing is, I'm not eligible to claim any expenses because the assignment is right on my doorstep (so claims for travelling/meals etc are not an option).

This is my first time as a contractor and I'm worried that I might end up with less take home pay than normal...in which case I might have to go back to the agency and ask for a higher rate.

Thanks

Neil

[azif]

I did contracting through an umbrella company too. I found I had to pay Employers NI along with Employees NI as I was classed as self employed. In terms of Tax it's about the same as any other job and same as me I only lived a 10 min drive from work so was unable to claim expenses apart from mileage. I'm sure they will give you something for your travel if not any money towards your meals. To be honest I found contracting a lot of fun and laid back but I would definitely ask for a higher rate of pay if you think after tax and NI you won't be looking forward to much. Try and ring your umbrella company and ask them how much would go in deductions from your salary and that should give you a good idea. Which umbrella company were you with? I was with Plan IT, hope you not with them they were useless.

[Neil72uk]

I have read the HM Revenue & Customs website regarding employment status and I come under the status of employed (not self employed)..so hopefully I won't be deducted too much.

This is my first I.T. contract . I normally temp through regular high street agencies so this is my first experience of going through an umbrella company (Orange Genie). The sales person did give me a rough figure of what to expect net salary but how would he know for sure without seeing my tax code etc? I've been away travelling since April and this is my first job since I got back. I'm hoping I won't get taxed for the first few pay runs!