tour guide jobs salary

Tour guide salary

The average wage for a tour guide in the United States is around $11.32 per hour.

Tour guides earn an average hourly wage of $ 11.32 . Salaries typically start from $ 9.87 per hour and go up to $ 16.54 per hour .

61 % below national average ● Updated in 2018

Tour guide earnings by seniority

Approximate values based on highest and lowest earning segments.

Tour guide salary by state

How do tour guide salaries compare to similar careers.

Tour guides earn about the same as related careers in the United States. On average, they make less than recreation workers but more than receptionists.

Source: CareerExplorer (Aggregated)

Explore Jobs

• Jobs Near Me
• Remote Jobs
• Full Time Jobs
• Part Time Jobs
• Entry Level Jobs
• Work From Home Jobs

Find Specific Jobs

• $15 Per Hour Jobs
• $20 Per Hour Jobs
• Hiring Immediately Jobs
• High School Jobs
• H1b Visa Jobs

Explore Careers

• Business And Financial
• Architecture And Engineering
• Computer And Mathematical

Explore Professions

• What They Do
• Certifications
• Demographics

Best Companies

• Health Care
• Fortune 500

Explore Companies

• CEO And Executies
• Resume Builder
• Career Advice
• Explore Majors
• Questions And Answers
• Interview Questions

Tour Guide salary

Average tour guide salary, how much does a tour guide make.

The average tour guide salary in the United States is $32,323. Tour guide salaries typically range between $18,000 and $55,000 yearly. The average hourly rate for tour guides is $15.54 per hour. Tour guide salary is impacted by location, education, and experience. Tour guides earn the highest average salary in Alaska.

Where can a Tour Guide earn more?

Tour guide salary estimates from across the web, average tour guide salary by state.

The highest-paying states for tour guides are Alaska, California, and Connecticut. The lowest average tour guide salary states are Louisiana, South Dakota, and Wisconsin.

• County View

Highest paying states for tour guides

Highest paying cities for tour guides.

The highest-paying cities for tour guides are San Francisco, CA, Juneau, AK, and Fredericksburg, VA.

Tour Guide salary details

A tour guide's salary ranges from $18,000 a year at the 10th percentile to $55,000 at the 90th percentile.

What is a tour guide's salary?

Highest paying tour guide jobs.

The highest paying types of tour guides are hunting guide, wilderness guide, and fishing guide.

Top companies hiring tour guides now:

• Gettysburg College Jobs (28)
• Binghamton University Jobs (29)
• Albion College Jobs (27)
• Jelly Belly Jobs (43)
• University of Rhode Island Jobs (33)

Which companies pay tour guides the most?

Tour guide salaries at Harley-Davidson and Bridgewater State University are the highest-paying according to our most recent salary estimates. In addition, the average tour guide salary at companies like Kohler Co. and Central Lakes College are highly competitive.

Wage gap by gender, race and education

Tour guide salary by industry.

The average tour guide salary varies across industries:

• The average tour guide salary in the education industry is $37,620, the highest of any industry.
• The average tour guide salary in the finance industry is $32,465.
• Tour guides in the professional industry earn an average salary of $28,761, the lowest of any industry.

Highest paying industries for tour guides

High paying tour guide jobs, tour guide salary trends.

The average tour guide salary has risen by $5,940 over the last ten years. In 2014, the average tour guide earned $26,383 annually, but today, they earn $32,323 a year. That works out to a 16% change in pay for tour guides over the last decade.

Compare tour guide salaries for cities or states with the national average over time.

Average tour guide salary over time

Compare tour guide salaries for individual cities or states with the national average.

Tour Guide salary by year

Recently added tour guide salaries, tour guide salary faqs, what state pays tour guides the most, how do i know if i'm being paid fairly as a tour guide.

Search for tour guide jobs

Tour Guide Related Salaries

• Escort Salary
• Guide Salary
• River Rafting Guide Salary

Tour Guide Related Careers

• Art Museum Aide
• Campus Tour Guide
• Driver/Guide
• Escort Service Attendant
• Fishing Guide
• Hunting Guide
• Mountain Guide
• Museum Attendant
• Museum Guide
• Outdoor Guide
• River Guide

Tour Guide Related Jobs

• River Rafting Guide
• Tour Driver

What Similar Roles Do

• What Does an Escort Do
• What Does a Guide Do
• What Does a River Rafting Guide Do
• Zippia Careers
• Personal Care and Attendants Industry
• Tour Guide Salary

Browse personal care and attendants jobs

Resume Builder

• Resume Experts
• Search Jobs
• Search for Talent
• Employer Branding
• Outplacement

Tour Guide Salary in The United States

The average Tour Guide Salary in The United States is $33,600 per year . Salaries range from $26,900 to $58,700 . The average Tour Guide Hourly Wage is $10.50 per hour . Hourly wages range from $8.40 to $19.43 . Salaries and wages depend on multiple factors including geographic location, experience, seniority, industry, education etc.

What is the Average Annual Salary of Tour Guide in The United States ?

What is the average hourly wage of tour guide in the united states , where do tour guides earn more in the united states , other salaries, create a resume and cover letter in minutes with professional templates.

Create a Resume in Minutes with Professional Resume Templates

CAREER PATHWAYS

Looking for the perfect job? Explore our Career Guides!

How to Become a Tour Guide

By Alyciah Beavers

Published: February 28, 2024

If you’ve been wondering how to embark on a fulfilling journey as a tour guide, this article is your roadmap to a career that lets you explore the world while sharing its wonders with others. Here, we discuss the role of a tour guide, how to become one, and some of the tour guide skills you should possess. Plus, we’ll delve into what the tour guide salary is like, helping you make an informed decision about this exciting profession.

Career Summary

Tour guide salary.

Are you wondering how much a tour guide earns in the United States? Well, the average tour guide salary is $40K per year. However, there is an estimated addition of $18K each year in bonuses, commissions, profit sharing, and tour guide tips from clients.

According to Glassdoor , here is the breakdown per each level:

• Entry Salary (US$45k)
• Median Salary (US$59k)
• Executive Salary (US$79k)

According to the Bureau of Labor Statistics (BLS), the average wage in the US is $61,900, meaning that tour guide salary falls behind the national average of other occupations.

What does a Tour Guide do?

A tour guide, also called a tour leader or local guide, plays a considerable role in promoting and preserving a town, city, organization, or country’s historical and cultural heritage. These are certified professionals licensed to lead other people on trips and tours while providing an informative, educational, and enjoyable experience.

Tour Guide Career Progression

• Entry-Level Tour Guide :  Leading basic tours, assisting with logistics, and providing introductory information to tourists.
• Tour Guide :  Leading a variety of tours, providing in-depth information, and ensuring an enjoyable experience for tourists.
• Senior Tour Guide : Taking on more complex and specialized tours, training and supervising junior guides, and often acting as a point of contact for clients.
• Specialized Tour Guide : Specialized tour guides focus on specific niches or interests within the industry, such as history, art, adventure, wildlife, or culinary tours.
• Tour Manager : They oversee the logistics and operations of multiple tours and ensure that all aspects of a tour, including transportation, accommodations, and activities, run smoothly.
• Tour Company Owner or CEO : At the highest level, a tour company’s executive director oversees the entire business. They set the company’s vision, strategy, and direction, manage financial aspects, and make critical decisions impacting its growth and success.

The Pros and Cons of Working as a Tour Guide

• You will live your dream and share your exploration and traveling passion with others.
• It is an opportunity to interact and relate with people from diverse walks of life and learn about different cultures.
• You are constantly learning about the history, culture, and geography of the places you guide.
• It is an opportunity to assist people in having memorable experiences and creating lasting memories.
• Tour guides may have to give the same tour multiple times daily, leading to repetition and potential monotony.
• Career growth and advancement opportunities may be limited for tour guides, as it’s often a front-line, customer-facing role.
• Sometimes, tour guides must work in various weather conditions, which can be uncomfortable and challenging.
• Guides may need to work with tourists who speak different languages, creating communication challenges.

Useful Tour Guide Skills to Have

• Communication Skills
• Interpersonal Skills
• Public speaking Skills
• Storytelling Skills
• Multilingual Skills

Popular Tour Guide Specialties

• Historical and Cultural Tours
• Culinary Tours
• Wildlife and Eco-Tours
• Religious and Spiritual Tours

Do I Need A Degree To Become A Tour Guide?

You only need a high school diploma to become a tour guide. However, different tour guide jobs need a degree. For example, to become a tour guide in a museum, you might require a degree in history-related fields.

Here are some key points to consider in determining whether to get a degree or not:

• Location and Regulations : The requirements for becoming a tour guide can vary by country and region. Some places may have specific regulations or licensing requirements for tour guides, which may or may not include the need for a degree. It’s essential to research the rules in your specific area.
• Type of Tours : The tours you want to guide can also influence the educational requirements. For example, leading historical or cultural tours may require more specialized knowledge and may be more likely to necessitate a degree in history , art, or a related field.
• Tour Company or Organization : Some tour companies or organizations may have specific requirements. Some may prioritize experience, personality, and local knowledge over formal education, while others may prefer candidates with relevant degrees or certifications.
• Tourist Demands : Understanding the needs and interests of the tourists you plan to guide is crucial. Some tourists may prefer guides with in-depth knowledge, which a degree can provide, while others may prioritize guides that offer a unique and engaging experience.
• Language Skills: Fluency in one or more languages can be a valuable asset for a tour guide. Language proficiency may sometimes be more important than a formal degree.
• Local Knowledge : For tours in a specific location, deep local knowledge, history, and cultural insights are often precious. This kind of expertise doesn’t necessarily require a formal degree.

What are the Benefits of Getting a Degree in Tourism?

Getting a degree in tourism can be important for several reasons, depending on your career goals and the specific context of the tourism industry in your region.

Here are some reasons why obtaining a degree in tourism can be beneficial:

• Knowledge and Expertise : A degree in tourism provides a comprehensive understanding of the local culture, history, geography, and other relevant information about the destinations you’ll be guiding people through. This knowledge can enhance the quality of your tours and make you a more informative and engaging guide.
• Professionalism : A degree can help you develop the tour guide skills and professionalism required to excel in the field. You’ll learn about customer service, communication, and safety protocols, which can enhance the overall experience for tourists and ensure their safety.
• Legal and Regulatory Requirements : Tour guides must be licensed or certified in many places, and a degree in tourism can help you meet these regulatory requirements. It can also provide a strong foundation for passing required exams or assessments.
• Career Advancement : A degree can open up more career opportunities within the tourism industry. For example, you might qualify for higher-paying positions, such as managing a team of guides or working as a travel consultant or planner.
• Networking : While pursuing a degree, you’ll have the opportunity to network with other students, professors, and industry professionals.
• Global Perspective : Some tour guide programs cover international tourism, which can be especially valuable for working in a worldwide or cross-cultural context. It can help you understand the needs and expectations of tourists from diverse backgrounds.

How Long Does It Take To Get A Degree In Tourism?

The time it takes to earn a degree in tourism can vary depending on several factors, including the degree level and whether you’re pursuing the degree full-time or part-time.

Here’s a general overview of the different types of degrees in tourism and their durations:

• Certificate in Hospitality and Tourism : It takes at least two weeks to complete a certificate in tourism and hospitality, where you will also get on-site training.
• Associate’s Degree : An associate’s degree in tourism or a related field takes around two years of full-time study. You will find these programs at community colleges or vocational schools.
• Bachelor’s Degree : A bachelor’s degree in tourism or hospitality management takes about 3 to 4 years of full-time study. The exact duration can vary by country and specific program requirements.
• Master’s Degree: A master’s degree in tourism or a related field usually takes 1 to 2 years of full-time study after obtaining a bachelor’s degree. Some programs may offer accelerated options, and the duration may also depend on the specific master’s program.

How Much Does It Cost To Study Hospitality And Tourism At University?

The cost of studying Hospitality and Tourism at a university can vary widely depending on several factors, including the region where you choose to study, the specific university or college you attend, your residency status, and the level of the program, whether undergraduate or postgraduate.

On average, public colleges charge $9,300 per year for in-state students, whereas out-of-state students pay $26,400 for a bachelor’s degree . 

Here are factors that can influence the cost:

• Location : Tuition fees can vary significantly from one state to another. 
• University : The reputation and ranking of the university can impact tuition costs. More prestigious universities may charge higher tuition fees.
• Degree Level : Undergraduate programs are typically less expensive than postgraduate programs such as a master’s program.
• Duration of Program : Longer programs will cost more than shorter ones.
• Additional Costs : Consider other expenses, such as housing, textbooks, transportation, and living costs, when calculating the total cost of your education.
• Scholarships and Financial Aid : Many universities offer scholarships and financial aid to help students offset the cost of their education.

Can I Become A Tour Guide Through Online Education?

Are you researching how to become a tour guide and wondering if you can study online? Yes, you can . And, it is cheaper to study online to become a tour guide.

Here’s a general outline of the steps involved in becoming a tour guide and where online education can fit in:

• Research and Familiarization : Start by gaining in-depth knowledge about the area where you wish to become a tour guide. This may involve online research, reading books, and watching documentaries or online courses related to the region’s history, culture, and geography.
• Formal Education : Many universities and colleges offer online degrees or certificates in tourism , hospitality, history, or cultural studies, which can provide you with a strong educational foundation. 
• Customer Service and Soft Skills : Effective communication, people skills, and customer service are crucial for tour guides. You can improve these skills through online courses, workshops, and books on customer service and interpersonal communication.

What Are Some Web Resources To Learn Skills To Become A Tour Guide?

Here are some web resources to help you develop the necessary tour guide skills and knowledge related to tourism and hospitality:

• National Tour Association (NTA) : The NTA provides resources, education, and networking opportunities for tour professionals. Their website offers webinars, articles, and publications on tour guiding and tourism.
• International Tour Management Institute (ITMI): ITMI offers online courses and resources for tour guides and directors. They cover various aspects of tour management, from group dynamics to destination knowledge.
• Tourism e-Lab : This e-learning platform offers a wide range of online courses related to tourism and hospitality. Courses cover tour guiding, travel management, and customer service.
• World Federation of Tourist Guide Associations (WFTGA) : The WFTGA website provides information about professional tour guiding standards, international tour guiding events, and educational opportunities.
• Tourism and Hospitality Schools’ Websites : Many universities and colleges with programs in tourism and hospitality offer free resources, such as lecture notes and presentations, on their websites. These resources can help gain a more in-depth understanding of the field.
• Forums and Online Communities : Joining forums and communities of tour guides can be a great way to learn from experienced guides, exchange tour guide tips, and get advice. Look for platforms like TripAdvisor’s forums forums or dedicated tour guide forums.

Practical Experience

What are internship opportunities for a tour guide.

Internship opportunities for a tour guide can be a great way to gain practical experience and develop the skills necessary for a career in tourism and hospitality.

Here are some internship opportunities that can help you on your path to becoming a tour guide:

• Tour Companies : Many tour companies offer internships for individuals interested in becoming tour guides. These internships may involve shadowing experienced guides, learning about different tour routes, and assisting with tour logistics.
• Museums and Cultural Institutions : Museums and cultural institutions often offer internships related to guided tours. These internships may involve researching and developing tour content, leading tours, and interacting with visitors.
• National and State Parks : If you’re interested in nature and outdoor activities, consider internships at national and state parks. These opportunities can provide you with experience in guiding hikes, wildlife tours, and educational programs.
• Historical Sites : Historical sites and landmarks often employ tour guides. Interning at such locations can give you hands-on experience sharing historical and cultural information with visitors.
• Travel Agencies : Some travel agencies offer internships that involve assisting clients with tour bookings, creating itineraries, and learning about various travel destinations.
• Cruise Lines : If you’re interested in working as a tour guide on cruise ships, consider internships with cruise lines. These internships may involve assisting with onboard tours and excursions.
• Hospitality Industry : Some internships in the hospitality industry can also be relevant for tour guides. Working at hotels, resorts, or hostels can help you gain customer service and guest interaction skills.

What Skills Will I Learn as a Tour Guide?

Here are some of the critical skills you’ll develop as a tour guide:

• Knowledge of the Destination : A tour guide must have in-depth knowledge about the location they are guiding in. This includes historical, cultural, and geographical information and up-to-date information on local events and attractions.
• Communication Skills : Effective communication is crucial. You need to convey information clearly and engagingly to your clients. This includes public speaking, storytelling, and interpersonal communication.
• Adaptability : Tour guides must be flexible and adapt to unexpected changes or challenges during tours, such as weather, transportation issues, or last-minute schedule changes.
• Leadership : You will lead a group, manage their behavior, and ensure they follow the tour’s rules and guidelines.
• Time Management : Tours often have tight schedules, so keeping the group on time and track is crucial.
• Safety Awareness : Ensuring the safety of your clients is paramount. You need to be trained in first aid and emergency procedures and understand the local safety regulations well.
• Cultural Sensitivity : Be aware of cultural norms and differences to respect the traditions and customs of your clients, especially in a multicultural environment.
• Navigation : Familiarity with the area’s layout and understanding of maps and GPS systems are valuable for navigating destinations.
• Storytelling : Being able to tell engaging and informative stories about the location’s history, culture, and landmarks can make the tour more enjoyable and memorable for your clients.
• Knowledge of Tour Logistics : Understanding the logistics of organizing and conducting tours, such as transportation, entrance fees, permits, and other administrative tasks.
• Conflict Resolution : Dealing with client disputes or conflicts within the group diplomatically and effectively is an important skill.
• Technology: Proficiency with technology, including audio equipment, multimedia presentations, and mobile apps, helps guide the tourists, thus enhancing the tour experience.

What is the Work-Life Balance of a Tour Guide?

A tour guide’s work-life balance can vary depending on several factors, including the type of tours they lead, their company, their experience, and their personal preferences.

Here are some key considerations:

• Seasonality : Tour guides often work in a seasonal industry. Summer seasons and holidays, for instance, have long, busy workdays with limited time off. In contrast, during the off-season, they may have more flexibility and free time.
• Hours of Operation : Some tours, like day tours or city tours, have regular working hours, while others, like multi-day or specialized tours, may require irregular or longer hours. Evening and weekend work is common in the industry.
• Flexibility : Independent tour guides may have more control over their schedules and can better manage their work-life balance. On the other hand, guides employed by larger tour companies may have less flexibility and be subject to fixed plans.
• Physical Demands : Tour guiding can be physically demanding, as guides often spend long hours on their feet and may need to keep up with a fast-paced itinerary. This can impact their work-life balance and overall well-being.
• Personal Preferences : Some tour guides may prefer a more flexible, on-the-go lifestyle, while others may value a more structured work schedule. The balance between work and personal life can vary based on individual preferences.
• Time Off : Tour guides work when others have time off, such as weekends and holidays. This can be both an advantage and a disadvantage, as it allows them to meet tourists during these high-demand periods but can limit their leisure time.
• Burnout : The nature of the job, with its long hours, repetitive information delivery, and the need to cater to tourists’ needs, can lead to burnout if not appropriately managed.

What’s the Career Outlook for Tour Guides?

According to BLS, the projected employment outlook for a tour guide will change drastically from 2022 to 2032, with 4,300 new jobs each year and an 8% growth in this industry.

However, the career outlook for tour guides depends on the location, the type of tours offered, and economic conditions. 

What Are The Job Opportunities Of A Tour Guide?

Job opportunities for tour guides can vary depending on their location, specialization, and skills.

Here are some common job opportunities for tour guides:

• City Tour Guide : City tour guides lead tourists on tours of urban areas, providing historical, cultural, and architectural information about the city’s landmarks, neighborhoods, and attractions.
• Museum Tour Guide : Tour guides work in museums and art galleries, offering explanations and insights about the exhibits and artifacts.
• Nature and Adventure Tour Guide : These guides lead outdoor tours, such as hiking, wildlife safaris, or adventure activities like rafting or zip-lining. They share their knowledge about local flora, fauna, and outdoor experiences.
• Cultural Tour Guide : Tour guides showcase a region’s local culture, traditions, and customs. They often lead tours to festivals, historical sites, and cultural events.
• Wine Tour Guide : Wine tour guides work in vineyards and wineries, leading tours that include wine tastings and education about the winemaking process.
• Food Tour Guide : Food tour guides introduce tourists to local culinary delights, taking them to restaurants, markets, and food-related events to sample regional dishes.
• Historic Tour Guide : Historic tour guides specialize in providing insights into the history of a particular location or landmark. They may lead tours of historical sites, battlefields, or architectural wonders.
• Educational Tour Guide : Educational tour guides work with school groups or educational institutions, providing informative tours focused on history, science, or culture.
• Cruise Ship Tour Guide : Cruise ship tour guides organize and lead shore excursions for cruise passengers at various ports of call.
• Language-Specific Tour Guide : If you are proficient in a foreign language, you can be a language-specific tour guide for tourists who speak your language. This is especially valuable in regions popular with international tourists.
• Private Tour Guide: Some tour guides offer private tours tailored to the specific interests of individual or small groups of travelers.
• Virtual Tour Guide : With the rise of virtual tourism and online experiences, there is a growing demand for virtual tour guides who lead tours via video conferencing or virtual reality platforms.

What Type of Organizations Hire a Tour Guide?

The type of companies or organizations that hire tour guides can vary based on the tours’ nature and the guiding services’ specific focus.

Here are some examples:

• Tour Operators
• Travel Agencies
• Museums and Cultural Institutions
• National and State Parks
• Cruise Lines
• Historical Sites and Landmarks
• Zoos and Aquariums
• Adventure and Eco-Tourism Companies
• Walking and Segway Tour Companies
• Bus and Trolley Tour Companies
• Language Schools
• Event and Conference Organizers
• Educational Institutions

Should I become a Tour Guide?

Looking at all the information we have discussed above, becoming a tour guide will help you develop new skills such as adaptability and communication skills. There is a chance to grow and move from entry-level to CEO based on your specialty.

However, the annual average wage is relatively lower than other occupations, which might challenge some. Therefore, look at your skills, passion, and lifetime goals to determine if the career works for you.

Careers Related to Tour Guide

• Customer Service Representative
• Event Planner
• Travel Agent

About the Author

Read more articles by Alyciah Beavers

Continue Reading

What is a UX Designer and How to Become One

What is a machine learning engineer and how to become one, what is a ui designer and how to become one, what is an seo specialist and how to become one, what is a recruiter and how to become one, what is a project manager and how to become one, what is a front-end developer and how to become one, what is a product manager and how to become one.

Tour Guide Job Description [Updated for 2024]

In this era of global travel and exploration, the focus on tour guides has never been more critical.

As tourism evolves, the demand for skilled individuals who can navigate, educate and ensure the safety of travelers grows.

But let’s break it down: What’s truly expected from a tour guide?

Whether you are:

• A job seeker trying to understand the core of this role,
• A hiring manager outlining the ideal candidate,
• Or simply fascinated by the intricacies of the tourism industry,

You’ve come to the right place.

Today, we present a customizable tour guide job description template, designed for effortless posting on job boards or career websites.

Let’s dive right in.

Tour Guide Duties and Responsibilities

Tour Guides offer support and information to tourists, visitors and travelers.

They are experts in the history, culture, and landmarks of a specific area and provide meaningful experiences for tourists by engaging and educating them about the area.

The duties and responsibilities of a Tour Guide include:

• Planning and preparing tour itineraries
• Leading and accompanying groups on tours of cities, historical sites, and other points of interest
• Providing educational and interesting facts about landmarks and attractions
• Ensuring the safety of the group at all times
• Answering questions and engaging with tourists to provide an interactive experience
• Providing directions and travel advice
• Dealing with emergencies and unexpected situations
• Managing the logistics of tours such as transport and entry tickets
• Performing administrative tasks like confirming bookings and handling payments
• Providing customer service and handling complaints or issues from tourists

Tour Guide Job Description Template

We are seeking an engaging, friendly and informative Tour Guide to provide our visitors with memorable and unique experiences during their visits.

The Tour Guide’s responsibilities include designing and facilitating tours, maintaining knowledge of the tour site or attraction, and providing visitors with interesting, factual information about the site.

Our ideal candidate has excellent public speaking skills, a customer-focused approach and a passion for history and culture.

Ultimately, the role of the Tour Guide is to ensure a high standard of customer service and provide a professional, informative and enjoyable tour experience.

Responsibilities

• Plan and lead guided tours for groups
• Provide detailed information about historical, cultural, or geographical significance of sites
• Answer visitor questions and interact with group members in a courteous, friendly manner
• Ensure safety regulations and procedures are followed
• Assist with ticket sales, reservations, and group bookings
• Keep tour areas clean and organized
• Develop and update tour scripts to keep tours engaging and informative
• Provide feedback to management on tour efficiency and guest satisfaction
• Handle any problems or emergencies that arise during tours

Qualifications

• Proven experience as a tour guide
• Excellent communication and public speaking skills
• Ability to memorize and recite facts clearly and accurately
• Strong customer service skills
• Knowledge of foreign languages is a plus
• First aid certification may be required
• High school diploma or equivalent; Bachelor’s degree in tourism or relevant field is a plus
• Flexible schedule
• Travel discounts
• Professional development opportunities
• Employee discounts
• Health insurance options

Additional Information

• Job Title: Tour Guide
• Work Environment: Tour sites and attractions, both indoors and outdoors. Some weekend, holiday, and evening work may be required.
• Reporting Structure: Reports to the Tour Operations Manager.
• Salary: Salary is based upon candidate experience and qualifications, as well as market and business considerations.
• Pay Range: $20,000 minimum to $35,000 maximum
• Location: [City, State] (specify the location)
• Employment Type: Full-time, Part-time, Seasonal
• Equal Opportunity Statement: We are an equal opportunity employer and value diversity at our company. We do not discriminate on the basis of race, religion, color, national origin, gender, sexual orientation, age, marital status, veteran status, or disability status.
• Application Instructions: Please submit your resume and a cover letter outlining your qualifications and experience to [email address or application portal].

What Does a Tour Guide Do?

Tour Guides typically work for travel agencies, tour operators, or at specific tourist attractions.

They can also work as freelance individuals offering specialized tours based on their expertise.

Their main responsibility is to guide groups or individuals around sites of interest such as cities, historical landmarks, museums, and natural attractions.

They provide their knowledge and insights about the locations, including historical facts, cultural background, architectural details, and more.

They plan and organize tours considering the interests, needs, and safety of the tourists.

They manage travel logistics such as transportation, accommodations, and meals.

They ensure that the tour runs smoothly and on schedule.

Tour Guides also answer questions, address concerns, and engage with tourists to enhance their travel experience.

They may have to handle unexpected situations or emergencies during the tour.

They are often responsible for ensuring tourists respect the rules and regulations of the sites visited, ensuring both the preservation of the site and the safety of the group.

Moreover, they might be required to provide first aid, and in some cases, they are also responsible for selling tour tickets and managing the financial aspects of the tour.

Tour Guide Qualifications and Skills

A proficient tour guide should possess a unique set of skills and qualifications that enhance their ability to guide and interact with tourists, such as:

• Outstanding communication skills to provide clear, engaging and informative descriptions of places and events.
• Customer service skills to cater to the needs and inquiries of tourists, ensuring a pleasant and memorable experience.
• Interpersonal skills to connect with people from diverse cultural backgrounds, maintaining a positive and friendly demeanor at all times.
• Local knowledge and a passion for history, culture, and geography to educate and entertain tourists about the locality.
• Physical stamina and good health to manage long walks, stand for extended periods, and handle luggage or equipment if necessary.
• Problem-solving skills to handle unexpected situations or emergencies that may arise during the tour.
• Fluency in multiple languages can be a significant advantage, enhancing the ability to communicate with tourists from various parts of the world.
• Time management skills to ensure that the tour adheres to the planned schedule, balancing the need to be informative and enjoyable with the need to be prompt and efficient.

Tour Guide Experience Requirements

Experience requirements for tour guides can vary widely based on the type of tours they are leading.

However, some general experience is usually required in customer service, public speaking, or related areas.

Entry-level candidates may be required to have 1 to 2 years of experience in a customer-facing role, such as working in a hotel, restaurant, or retail environment.

They may also gain relevant experience through internships or part-time roles at museums, historical sites, or tourism companies.

Candidates with over 3 years of experience often have developed their skills in communication, crowd management, and first aid.

They have likely worked in a variety of tour guiding roles, such as city tours, nature tours, or historical site tours.

Those with more than 5 years of experience have usually honed their expertise in a specific type of tour or location and may be ready for a role as a senior guide or tour director.

They may also have experience creating and planning tours, managing other guides, or working in a supervisory role in the tourism industry.

In addition to job experience, many tour guides also have a background in fields such as history, geography, or a foreign language, depending on the specific requirements of the tour.

Many also have professional certifications from recognized tourism or guiding associations.

Tour Guide Education and Training Requirements

Tour Guides generally require a high school diploma or equivalent qualification, although a bachelor’s degree in a field such as history, archaeology, or tourism management can be highly beneficial.

They should have a strong knowledge of the areas and sites they guide visitors through, which is often gained through on-the-job training or previous experience in a similar role.

In-depth knowledge of a foreign language can be a significant advantage in this field, especially for guides working in areas frequented by international tourists.

In many areas, tour guides must also obtain a license or certification, which usually involves passing an examination that tests their knowledge of the area and its history.

Some tour guides may also choose to obtain a certification from an organization such as the World Federation of Tourist Guide Associations or the National Federation of Tourist Guide Associations, which can enhance their credibility and increase their employment opportunities.

Continuous learning is critical for tour guides, as they must keep up to date with new historical research, changes in local regulations, and trends in the tourism industry.

Tour Guide Salary Expectations

A Tour Guide can expect to earn an average wage of $13.27 (USD) per hour.

However, the actual earnings may differ depending on factors such as experience, the specific location of employment, and the company that they work for.

Tour Guide Job Description FAQs

What skills does a tour guide need.

A Tour Guide should possess excellent communication and interpersonal skills to effectively interact with a diverse group of people.

They should have a deep knowledge of the area or site they are guiding and be able to present information in an engaging and entertaining way.

They should also have problem-solving skills to handle any unexpected situations, and good physical stamina as the job often involves a lot of walking or standing.

Do Tour Guides need any specific qualifications?

While a degree is not strictly required to become a Tour Guide, having a qualification in a related field such as history, archaeology or travel and tourism could be beneficial.

Many employers prioritize experience and knowledge about the site or region over formal education.

However, some regions require Tour Guides to be licensed or certified, which could involve passing an exam or completing a training program.

What should you look for in a Tour Guide’s resume?

A good Tour Guide resume should showcase a deep knowledge of the area or site, and any relevant qualifications or certifications.

It should also show strong communication and customer service skills, and any experience in handling emergencies or unexpected situations.

Multilingual abilities can be a strong asset for Tour Guides, especially in areas frequented by international tourists.

What qualities make a good Tour Guide?

A good Tour Guide is passionate about their area or site and is enthusiastic in sharing their knowledge with others.

They are friendly, patient and have strong customer service skills, and can adapt their tours to suit the needs of different groups.

They are also dependable and can handle difficult situations calmly and efficiently.

Is it difficult to hire Tour Guides?

The difficulty in hiring Tour Guides often depends on the specific needs of the role.

For popular tourist locations that require a deep knowledge of the site or area, finding a qualified Guide can be challenging.

You may also need to consider language skills, as many tourists may not speak the local language.

Offering competitive pay, flexible hours and opportunities for further training can help attract qualified candidates.

And there we have it.

Today, we’ve journeyed through the intricate maze of what it means to be a tour guide .

Guess what?

It’s not just about pointing out landmarks.

It’s about weaving captivating stories, connecting cultures, and painting vivid pictures of history, one tour at a time.

With our handy tour guide job description template and real-life examples, you’re ready to take the next step.

But don’t stop just yet!

Venture further with our job description generator . It’s your go-to resource for crafting meticulous job listings or polishing your resume to perfection.

Every tour, every story, is a piece of the larger tapestry.

Let’s weave those tales. Together.

Reasons to Become a Tour Guide (Unleash Your Inner Storyteller!)

How to Become a Tour Guide (Complete Guide)

Disadvantages of Being a Tour Guide (Missing Personal Peace!)

Jobs That Kill: Professions With the Highest Mortality Rates

Easy Earnings: The Appeal of Low-Stress Work

Play for Pay: Fun Jobs That Will Make You Love Mondays

Stressful Beyond Words: Jobs That Challenge Every Fiber!

The Editorial Team at InterviewGuy.com is composed of certified interview coaches, seasoned HR professionals, and industry insiders. With decades of collective expertise and access to an unparalleled database of interview questions, we are dedicated to empowering job seekers. Our content meets real-time industry demands, ensuring readers receive timely, accurate, and actionable advice. We value our readers' insights and encourage feedback, corrections, and questions to maintain the highest level of accuracy and relevance.

Similar Posts

Financial Controller Job Description [Updated for 2024]

Geospatial Analyst Job Description [Updated for 2024]

Dump Truck Driver Job Description [Updated for 2024]

Chiropractic Assistant Job Description [Updated for 2024]

Aircraft Ferry Pilot Job Description [Updated for 2024]

Operations Assistant Job Description [Updated for 2024]

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Expedia Rewards is now One Key™

Visit chusovoy, check chusovoy hotel availability.

• Cities near Chusovoy

Hourly Wage for Tour Guide Salary in the United States

Hourly wage for tour guide salary.

How much does a Tour Guide make hourly in the United States? The average hourly wage for a Tour Guide in the United States is $32 as of March 26, 2024, but the salary range typically falls between $28 and $37 . Hourly rate can vary widely depending on many important factors, including education , certifications, additional skills, the number of years you have spent in your profession. With more online, real-time compensation data than any other website, Salary.com helps you determine your exact pay target.

Full Time Beertender/Tour Guide - Deschutes Brewery Tasting Room

Deschutes Brewery - Bend, OR

Tour Guide- Make Money, Have Fun in the Great Outdoors

WILD SIDE 4 X 4 TOURS LLC - Boulder, CO

Zipline Canopy Tour Guide

Troser Management Inc - Canandaigua, NY

Tour Guide for Boat & Segways

Chestnut Mtn Ski Resort LLC - Galena, IL

Individualize employee pay based on unique job requirements and personal qualifications.

Get the latest market price for benchmark jobs and jobs in your industry.

Analyze the market and your qualifications to negotiate your salary with confidence.

Search thousands of open positions to find your next opportunity.

• View Average Salary for United States
• Select State
• Select City
• Choose Similar Job
• Pick Related Category
• View Cost of Living in Major Cities

What is a Tour Guide ?

A tour guide (U.S.) or a tourist guide (European) is a person who provides assistance, information on cultural, historical and contemporary heritage to people on organized tours and individual clients at educational establishments, religious and historical sites, museums, and at venues of other significant interest, attractions sites....

Source: Wikipedia (as of 04/17/2019). Read more from Wikipedia

See user submitted job responsibilities for Tour Guide.

View Job Skills and Competency Data for more than 15,000 Job Titles, 18 Industries, and 26 Job Families.

Our job description management tool- JobArchitect streamlines your job description process. Say goodbye to the hassle of crafting job descriptions.

Search Tour Guide Job Openings

Career path for this job.

1 - 3 years experience High School Diploma or Technical Certificate

Up a level:

Travel coordinator.

3 - 5 years experience High School Diploma or Technical Certificate

What does a Tour Guide do?

Not the job you're looking for search more salaries here:, are you an hr manager or compensation specialist.

Salary.com's CompAnalyst platform offers:

• Detailed skills and competency reports for specific positions
• Job and employee pricing reports
• Compensation data tools, salary structures, surveys and benchmarks.

Similar Jobs to Tour Guide

Level of education.

• Tour Guide Salaries with a High School Diploma or Technical Certificate
• Tour Guide Salaries with an Associate's Degree
• Tour Guide Salaries with a Bachelor's Degree
• Tour Guide Salaries with a Master's Degree or MBA
• Tour Guide Salaries with a JD, MD, PhD or Equivalent

Tour Guide Salary by State

• Connecticut
• District of Columbia
• Massachusetts
• Mississippi
• North Carolina
• North Dakota
• New Hampshire
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• West Virginia

Browse All Hotel, Gaming, Leisure, and Travel Jobs by Salary Level

Browse related industries, browse related job categories with tour guide, understand the total hourly compensation opportunity for a tour guide, hourly wage plus other pay elements, average hourly wage.

Core compensation

Average Total Hourly Cash Compensation

Includes base and short-term incentives

Discover how your pay is adjusted for skills, experience, and other factors

How much should you be paid.

For a real-time salary target, tell us more about your role in the four categories below.

Your estimated salary based on up-to-date market data and the factors you selected below

Recently searched related titles: Corporate Travel Agent , Travel Associate , Travel Counselor

Learn more about: Compensation Packages , Employee Flight Risk , Gender Pay Gap , Job Openings for This Role

Jobs with a similar salary range to Tour Guide : Hotel Reservations Agent , Ticketing Agent , Mailhandler

Perm Tourism

• Things To Do in Perm
• Perm Itineraries
• Perm Hotels

Perm Trip Planner

Plan your customized day by day trip plan for Perm. Choose from various experinces categories as adventure, romantic and family and kids friendly for your trip using using Perm trip planner.

• THINGS TO DO
• HOW TO REACH
• TOP RESTAURANTS

Audio tour Ethnographic Park of the history of the Chusovaya river

Download the free izi.TRAVEL app

• Download on the App Store
• Android app on Google play
• Download from Windows phone store

Create your own audio tours!

Use of the system and the mobile guide app is free

Home > Company Hub > How much will IR35 cost you? Outside – Inside – Perm

How much will IR35 cost you? Outside – Inside – Perm

• March 9, 2020

This guide talks about the impact IR35 will have on your take-home pay. How much will IR35 cost you? Should you go Inside IR35/Umbrella or Perm?

In Part I of the IR35 mini-series we talked about the current state of contracting and the IR35 mess. We covered some pros and cons of being a contractor and how it compares with being a permie.

It’s now time to talk numbers. The math will hopefully help you decide whether IR35 has made contracting worth continuing. The answer, as usual, is: it depends! Before we dive in, first some definitions. What do we mean by Outside IR35, Inside and Perm:

Outside IR35: The pre-2020 contracting landscape. You operate as a limited company that pays corporation tax and personal income tax. You have the freedom to choose your taxes based on how much you want to withdraw as salary/dividends from your company. Also, business expenses can be claimed.

Inside IR35 / Umbrella : You still operate as a contractor through your limited company or through an umbrella . The take-home pay amounts between inside IR35 and umbrella are very similar. You are taxed more than a permanent employee. That’s because you have to pay both yours and the Employer’s National insurance. 

You’re not paid while drinking Pina Coladas on the beach or when sick (except a small amount of Statutory pay).

Your gross pay is usually higher than a perm to compensate for these plus all other minuses that come with contracting, like void periods, short notice period, accounting, DIY pension etc. You don’t get to choose when to withdraw your profits, as everything is taxed at source and you must take all income home now.

Permanent employee (perm) : The majority of the workforce belongs here. The usual employee of a company, who belongs to the company payroll, has a salary that lands in your bank account each month no matter what. Entitled to holidays, sickness pay, and potentially other benefits such as pension, training and mandatory performance reviews.

How much will IR35 cost me Inside IR35 or Umbrella?

This is the most common question. People switching from Outside IR35 to Inside or Umbrella want to know how much income they will lose.

For starters, we assume that the Outside IR35 contractor takes all income home and leaves nothing in the company.

Taking all income out is not the most tax-efficient way to deal with your company money. But it’s a good baseline so let’s start with that. The following graph shows the take-home pay Outside IR35 compared to Inside IR35/Umbrella at the same rate.

The higher the rate the more it will cost you to transition from outside IR35 to inside IR35. But it’s not that bad. (hint: it gets worse).

So in most cases, a contractor will lose anywhere between 15% to 20% of their take-home income. Here’s a graph, showing the percentage difference for the given rates.

Punchline: For tax-inefficient contractors who take all money home, the difference between Outside IR35 -> Inside IR35 (or Umbrella) is between 15-20%.

What if you switch to perm, instead? Let’s see how an Outside IR35 compares to the same gross income taken as a perm employee.

Cost of moving from Outside IR35 (All Out) to Perm

But a few people I know have abandoned contracting altogether and want to switch to perm. What would the impact be if we take the same gross income as a perm?

Here’s the take-home pay when taken as an Outside IR35 contractor vs the equivalent gross pay as a perm employee. I’ve used the salary calculator ( link ) to calculate the take-home pay of all perm salaries.

As you can see, going perm doesn’t make much of a difference. On £600 per day, for which the equivalent annual gross is £132,000, the difference is just £6,000 per year.

However, here’s the catch:

It is really hard to achieve the same gross income as a perm. Here is a table outlining the equivalent gross amount of a daily rate when charged annually (44 working weeks. 5w hols, 8d bank hols, 7d sick/void):

Do you see the problem? In my experience, a contractor on £300/day will find it really hard to find a job at £66,000. Similarly, one who earns £600/day won’t easily find a £132,000 perm salary, even if you account for things like pension and bonus.

And it makes sense from a risk point of view. As we explained in Part I of this IR35 series , as a contractor your client doesn’t provide months of leave notice, job security or any perks. You provide a service at a cost. You are a Capital Expenditure (CapEx budget).

As a perm, the company makes commitments to you which is why the equivalent gross pay is unrealistic. I don’t know exactly what the equivalent “discount” we need to apply here when switching from Outside IR35 to Perm. But I do know there is one. So the percentage difference is higher than the table above suggests – to some extent.

The difference is BIG when the contractor is tax-efficient

The gap between Outside IR35 and all the other options widens further if you’re a tax-efficient contractor.

I’m sure you know a lot of people who don’t take all the money home.

Most contractors I know will at least take advantage of the minimum salary/dividends payout. So they all withdraw a minimum salary and dividends up to the point that doesn’t cross the higher taxpayer threshold (£50,000 as of 2020).

I think we can all agree this is a good tax strategy assuming you have no other (unsheltered) income outside your LTD affairs. Why take more £50,000 a year and pay higher taxes if you can just leave the money in the company and just pay corporation tax? Assuming, of course, you can live on this amount.

To the extreme end of this spectrum, there are people like myself who invest their company money . I consider my LTD money as “take-home” because it can provide income for years to come when invested. Others just leave it in there in cash and at some point, they claim “Entrepreneur’s Relief” (if this is not scrapped soon). This means they will only pay 10% tax to take it out of the company.

This all means the take-home pay for Outside IR35 contractors can be different from person to person despite having the same daily rate.

Putting it all together we have the following groups:

• All Out :  Some other people say I want all my capital in my pocket, therefore I’m happy to pay the extra dividend tax to do that. This means I’ll have to apply a 32.5% dividend tax on the money before it becomes “take-home”. All-out approach
• Leave Surplus In strategy:  Some, like me, consider the LTD surplus cash as “take-home” pay. Since you can invest the company money, the income/dividends will keep coming and I don’t need to (ever?) withdraw this surplus. So for the purposes of providing me income, the money is effectively take-home although it still belongs to the company. This is mathematically the most tax-efficient way.
• Entrepreneurs Relief approach : Some others take an accumulative approach but with ER in mind. They say, I will only withdraw a minimum salary and dividends as everybody else does and I will leave the rest of the money in the company. When the sum is big enough, I will close the company down and claim Entrepreneur’s Relief by paying only 10% tax to make the money mine . I will call this approach the ER approach.

So for an Outside IR35 contractor who takes a £50,000 take-home and leaves the surplus in the company (on 10% tax, Entrepreneurs Relief) here is the difference in take-home:

That’s a BIG difference. So if you leave some money in the company, moving from Outside IR35 to inside IR35 is going to cost you 30% loss of income on £650 per day. It’s “just” 15% on £200 per day but can go up to 33% loss on £1000 per day.

A bit depressing if you’re an Outside IR35 on a high rate. The data don’t lie!

Putting it all together: Outside IR35 vs Inside IR35 & Umbrella vs Perm

If we put all possible options in one single graph, it looks like this:

And that’s all on the same gross pay!!!

So when people ask me whether converting from contracting to perm has a difference, the answer is: It depends on how well you handle your taxes. If you’re wise with taxes, then it makes a massive difference . As you can see, an Outside IR35 contractor on £500 per day, who L eaves S urplus I n goes from £87,000 down to £70,000 (perm) or £62,400 (Umbrella). That’s a 30% drop in take-home income!

If you want to have a detailed look at the exact numbers, here’s the full table:

Even if you’re not working exactly 44 weeks and make the same assumptions as I do, the above table gives you a good indication. Here is a link to my spreadsheet which I used to calculate all the Outside IR35 take-home options. Use File -> Make a copy to edit the file, please do not request access to edit mine .

You may be wondering:

How can I improve my take-home pay if I cannot continue contracting Outside IR35? 

There are a few things you can do to improve your take-home pay.

• Negotiate a rate increase
• Contribute to your pension

Negotiating a rate increase can work sometimes but it’s a bit futile. If everyone is running around like a headless chicken, why would companies offer more? It’s a question of supply and demand really because I’m sure companies still need some flexible workforce to scale up and down quickly.

So we shall wait and see who needs who more 🙂

Contributing to your pension is a sure win from a tax point of view and makes the transition much smoother. That’s because your pension contributions are income-tax-free, NI-free and corporation tax-free. In the next article we are going to answer the following questions:

• How can I increase my take-home pay inside IR35, Umbrella or Perm?
• How much do I need to increase my rate inside IR35 to match my Outside IR35 take-home?

Calculation Notes:

• A contractor works approximately the same weeks as a perm employee. Takes 5 weeks holidays, 8 days bank holidays, 7 days sickness/void periods between contracts. Total: 44 working weeks. 
• All calculations were done for the Financial tax year 2019/20
• No pension was added to either perm or contract. It can save both perm and contractors a lot of tax. Pension deserves its own chapter, which is why we’re going to have another article just on how to use pensions to extract more out of your salary.
• Perm calculations include ALL benefits, bonus, overtime etc except pension.
• Used my Outside IR35 Contractor calculator ( Google Sheet ) to calculate all take home styles
• Inside IR35 calculations provided by Contractor Calculator – link
• Salary (perm) calculations by The Salary Calculator – link

Share this article:

Join the newsletter.

Every 2 weeks, I send a handwritten email with honest, valuable content. No spam, ever.

You may also like...

Flexible ISA: Business Owner’s Best Lifehack

Should Limited Companies Invest in a Dividend Fund over a Global Tracker?

Best Places to Hold Cash in the UK in 2024

17 thoughts on “how much will ir35 cost you outside – inside – perm”.

Great article Michael, this really clarifies what I’d always suspected but could never work out the maths for — and thanks for the spreadsheet.

You rock Michael! Great article!! I’m sure it will help lot of people at this time of chaos.

Hi Michael,

Thanks for this. Do you invest your company money through pension (so before corporation tax), or do you do it after you’ve paid corporation tax and invest it privately as profit?

I’m wondering because I’m quite loathe to leave it in government’s control (even private pension age is planned to go up), and that puts me off pensions.

Thank you, Michael. Great article.

I was using the minimum needed salary and dividends approach so it will be a big hit. One of my client has agreed to increase the rate so mitigate the impact and I’ll put the revised rate for future contracts. Increasing pension contribution is another option and I’d also suggest making the full use of ISA allowance while it lasts for any spare income you are forced to withdraw given that tax is already paid. Any dividends invested and re-invested in ISA, hopefully, coupled with some increase in rates, along with pension contribution will hopefully take the edge out of 33% or so hit on income.

@D I do both. As you rightly said, pension contributions suffer from lack of control but are 100% tax-efficient. So some of my investments go into a SIPP (saving corporation tax) and some I invest through my limited company after corporation tax is paid but still pre-income-tax. https://www.foxymonkey.com/how-to-invest-your-company-profits/

@Peterparker sounds like a good plan. I understand not everyone can increase their inside-IR35 rates but should definitely ask to share the pain with the employer.

@Satish, @Peter Jones – Glad you liked it 🙂 Hopefully, the chaos won’t last long!

Great article Michael – thanks for sharing the insightful graphs and calculator. You managed to make a difficult topic enjoyable to read!

Very well thought out and presented Michael. I have already gone permie as I saw the writing on the wall. The tax hike the past 9 months has been painful but at least some respite today in that Entrepreneurs relief has not been canned. I have a reasonable level of co. reserves over 100k; appreciate in your other posts you talk about opening a holding co. and investing via there but I think unless you have 200k plus or a growing warchest (on the expectation of being able to stay contracting outside IR35) the costs of running the two cos. would eat into potential returns too much.

Thanks, Andrew. I was glad to hear ER is not going away too! Starting an investment company for me has a much lower limit. £50k or so. If you can make a say 7-10% on £50,000 that’s between £3,500 to £5,000 versus £0 returns in the bank. But yeah, there’s hassle involved I hear you.

Thanks Michael. That makes sense if you’re planning on adding in fresh capital over time. But if you’re out of the contracting gig like me I think its harder to justify, and the fees for running the co. are going to eat into those returns. That’s why I was so relieved ER was retained as I can pull out the stagnant cash with only a minor hit. If I was staying contracting I would go down your second company route. But what with the world as it is and mine (and presumably most other’s) pensions and investments decimated knowing what to do with anything spare is all up in the air anyway! FIRE is perhaps less achievable but also not likely the top priority right now. Stay safe folks!

Indeed, Andrew, take care!

@Michael. A very in depth article, thanks!

Did you ever do the followup article covering the necessary increase in rate necessary to maintain the same take-home when moving from outside to inside IR35?

With the revised implementation date for IR35 changes now coming into force in a few months time, it’d be great to see your analysis on this.

Glad you found it useful, Martin. I haven’t written the article yet. You can probably estimate that by looking at the last take-home table based on your rate. So for a £500 per day outside IR35 contract (All money out) the equivalent would be ~£650 per day inside IR35.

The more tax-efficient you are with the company money the higher the rate increase to match it. Goes to show why IR35 can be a big showstopper and why it has really killed most of the freelancing job postings!

Hi @Michael, thanks for your response!

Just to check my understanding is correct: following your example, if I translated a £700 a day outside all out (£98k) that would be equivalent to around £900 a day Inside IR35?

Does the same logic apply to cross referencing between the Outside IR35 Entrepreneurs Relief and Inside IR35? ie a £650 a day at Outside ER (£107k) is equivalent to approximately £1,000 a day Inside IR35?

Hi Martin, both your examples are correct. Goes to show how big of an impact moving inside IR35 has. Plus how much room for tax optimisation company directors have!

Very good article. However, I am one of those contractors who are efficient with their tax. I am loosing 30% pay in real terms and its ruining my life. Sold my car (not a really nice one) and had to hand notice in to my sons private school. its heartbreaking. IR35 has ruined my life.

Hello Michael, I’m wondering what would be the best strategy for someone who has stopped contracting and taken on a perm role. Would you close the company, go with ER and take surplus funds out? Or continue down the strategy of investing surplus funds in stocks/shares or property?

I see the benefits if you continue to do contract work outside IR35. Investing surplus funds make total sense especially if you’re being tax efficient. However with Entrepreneurs Relief on the table I seem to think it flips to the other side.

Asking for a friend 😉

Hi Mannuel, short answer is it depends on your goals. If keeping Entrepreneur’s relief is important to you then investing a substantial amount might lose this benefit. You have to be more careful how you want to go about it.

See can I claim entrepreneur’s relief if my company invests?

ER also restricts you from operating in the same space for 24 months. That’s the “phoenixing” rule. So if you want to leave your perm job and go back to contracting, that’s another thing to consider.

Having said that, the Entrepreneur’s Relief rules change all the time so it might not be here for long. Just speculating though, but now we definitely know it’s on the table.

Overall, it depends on many different factors, and you have to run different scenarios. It’s a popular question and part of the tax pillar in the company investing course.

Leave a comment Cancel reply

Notify me via e-mail if anyone answers my comment.

Hi! I’m Michael and I love writing about different ways to earn, save and invest our money. Coffee addict :)

Recent Posts

Are Biotech stocks a good buy now?

• Matched Betting
• Career tips
• Extra Income Ideas
• LTD Companies
• Passive Income