What percentage of your earnings do you clear?

[JamJarST]

This year, I've had a project working from home, so my expenses have been low (new computer when the old one broke, new scanner, then stationery and postage etc.)

Two years ago, I took home 100% of my income, but since the company billed £0, that's not really that impressive.
I've never bothered to work out the percentage take home, to be honest.

You should set up an offshore umbrella and market that to other contractors

[Lewis]

(6) Consider the slightly higher risk income splitting with your spouse;

Why "slightly higher risk", I thought winning the Arctic case resolved all that?

[Greg@CapitalCity]

Why "slightly higher risk", I thought winning the Arctic case resolved all that?

The main risk comes if this is not set-up correctly. Ensure the shares carry the same rights (same voting rights, and same rights to participate in the assets on a winding up), avoid the use of dividend waivers, and ensure dividend payments are paid into personal bank accounts held by the shareholders (not joint accounts).

[Waldorf]

This has been useful, you can change various factors to what you want:

Contractor Accountant specialists UK|Take Home Pay Calculator UK.

[northernladuk]

Why "slightly higher risk", I thought winning the Arctic case resolved all that?

It might have but do you want to go that far to be sure again or avoid the whole sorry mess?

[MarillionFan]

I would have said between 70-80% but as Greg has pointed out it depends on how much you're earning etc to the exact percentage.

I do know of a method for 120% basically what you do is <removed>

[Wanderer]

This has been useful, you can change various factors to what you want:

Contractor Accountant specialists UK|Take Home Pay Calculator UK.

I like that! There ^^^^ is the answer to the how long is a piece of string question, folks.

[IR35 Avoider]

I treat myself as IR35-caught, and on a hypothetical 100K post-flat-rate-VAT turnover I would retain 85%.

Breakdown:-
Salary £7,072
Pension Contribution: £87,928
Accountancy (crunch.co.uk): £857
Corporation tax: £829
Dividend: £3,315
Future basic rate tax on 75% of pension: £13,189
Total tax: £14,018.

It helps if you have a paid for house, low outgoings, working wife, and savings from pre-IR35 era. If I continue to work full-time, which I haven't done for much of the last decade, then 2012/2013 is the last tax year I will be able to put more than 50K in the pension, so I may pay more tax in subsequent years. (I have an idea how to get around that, that involves leaving money in a company I don't own, that will pay me salary & pension in later years when working less, but not sure if it's worth the effort.)

[prozak]

I treat myself as IR35-caught, and on a hypothetical 100K post-flat-rate-VAT turnover I would retain 85%.

Breakdown:-
Salary £7,072
Pension Contribution: £87,928
Accountancy (crunch.co.uk): £857
Corporation tax: £829
Dividend: £3,315
Future basic rate tax on 75% of pension: £13,189
Total tax: £14,018.

It helps if you have a paid for house, low outgoings, working wife, and savings from pre-IR35 era. If I continue to work full-time, which I haven't done for much of the last decade, then 2012/2013 is the last tax year I will be able to put more than 50K in the pension, so I may pay more tax in subsequent years. (I have an idea how to get around that, that involves leaving money in a company I don't own, that will pay me salary & pension in later years when working less, but not sure if it's worth the effort.)

Wow.

What age is your pension available?

[Fred Bloggs]

Wow.

What age is your pension available?

I am assuming the poster is >55 (pensions are available from 55 years) and is taking a tax free lump sum of £21982 to supplement his salary/divis. This plan is now not possible since pension contributions are now capped at £50k per year (but you can carry forward allowance from previous years). In a year or two I shall be doing a similar strategy myself.