Quote from brookson

[Maslins]

83% is achievable but it's not the accountant that sprinkles some special sauce to get the rate. With the same set up all accountants will "get you" the same. I'd be more inclined to concentrate on customer service and user friendliness than take home.

Very much my view.

To my mind choosing an accountant based on who quotes the highest take home from a given set of circumstances is akin to asking them what's 2+2 and choosing the accountant who gives you the highest number.

If you want to go down that route, go the whole hog and go with one of the offshore scheme providers who'll offer you 95+% take home.

[diseasex]

Very much my view.

To my mind choosing an accountant based on who quotes the highest take home from a given set of circumstances is akin to asking them what's 2+2 and choosing the accountant who gives you the highest number.

If you want to go down that route, go the whole hog and go with one of the offshore scheme providers who'll offer you 95+% take home.

They why ppl say "good accountant is free" ? They must vary between themselves somehow, and for me its all about facts and figures.
I just don't know if I can trust their quote and in practice it will be 80% with crappy customer service and at least Nixon Williams was straight about it since the beginning

[LisaContractorUmbrella]

They why ppl say "good accountant is free" ? They must vary between themselves somehow, and for me its all about facts and figures.
I just don't know if I can trust their quote and in practice it will be 80% with crappy customer service and at least Nixon Williams was straight about it since the beginning

I think it would be a good idea for you to look at your financial and reporting responsibilities as a Company Director and then look for an accountant that will give you guaranteed service levels, clear explanations and prompt replies to your questions. Tax law is tax law and what you are required to pay in tax is dependent on that law - the only way to pay less tax (and therefore increase your take home pay) is to bend the rules or break them. Therefore, if an accountant offers you a significantly higher take home pay than another ask how they will achieve the difference - if you are satisfied that you will not subject yourself to risk (after having appraised yourself of all the facts) then go with them. If their explanation doesn't satisfy you then find another one

[Michael at BI Accountancy]

Id rather keep money from higher rates for reinvestment. Besides i can keep the money from higher brackets in case im unemployed for longer period and draw them as directors salary, yes?

As Alan and a couple of the others have already said, you should not choose your accountant based on the highest take home %. You say you would rather keep the money in the business than incur higher rate tax. Therefore all Accountants will run you a small salary (around £860 net per month) and you would take dividends up to the higher rate band (based on £860 would leave you £28,576 net dividends).

[Dan@OrangeGenie]

Hi i got quoted from brookson that with 300/pd rate i will get a 83% take home. Is that possible or they are just fishing and trying to get a new customer? Im comparing that with calculators on competitors and thats the best number so far
Is that fairly normal take home amount for contractor?
How much realistically you take home?
Please advise , im starting my first contract soon and looking for the right accountant.
Thanks in advance

I think you have answered the question:

'Please advise , im starting my first contract soon and looking for the right accountant.'

I speak to so many first time contractors and they all seem to be driven by the take home calculation, opposed to compliance and correct advice. Take home figures are irrelevant and shouldn't be a decision maker. I had one client opt for another provider because they beat my take home calc by 1%... ridiculous.

Any accountant, with the right criteria could show you how to achieve 85-90% take home. Are you willing to put the majority of your income into a pension? Wait over 12 months to close the company and take advantage of Entrepreneurs relief? Do you have unlimited expenses? Do you know which side of IR35 you sit and that your accountant is aware of their boundaries and MSC?

Speak an accountant, not a sales person, or better arrange a sit down. Look at your personal situation and any other income streams. Make sure they are compliant and audited and grasp your aspirations. If you're inside IR35 then any attractive take home calc will become irrelevant as you'll be in a whole new ball game.

If they are not the right accountants for you, then pick someone else. Don't choose on the basis of a fag packet take home calc...

[Jessica@WhiteFieldTax]

83% is achievable but it's not the accountant that sprinkles some special sauce to get the rate. With the same set up all accountants will "get you" the same. I'd be more inclined to concentrate on customer service and user friendliness than take home.

+1

Wise words.

I'd go so far as to say I'm a little reluctant to engage with percentage shoppers as you just know it will be trouble down the line.

[Eirikur]

Am I the only one who has never been bothered about % take home pay? I assume the accountant I use, works within the law and let me declare the maximum what I can declare. if that's 80% 90% or 70% I have no idea. I make a good living out of contracting and am not interested at grey areas where I might get another 0.5% risking penalties and a criminal record.

[Jessica@WhiteFieldTax]

+1

Wise words.

I'd go so far as to say I'm a little reluctant to engage with percentage shoppers as you just know it will be trouble down the line.

Oh, and by the way, thats not intending to criticise OP

[Jessica@WhiteFieldTax]

Am I the only one who has never been bothered about % take home pay? I assume the accountant I use, works within the law and let me declare the maximum what I can declare. if that's 80% 90% or 70% I have no idea. I make a good living out of contracting and am not interested at grey areas where I might get another 0.5% risking penalties and a criminal record.

So long as you are assured your accountant is competent and you are reviewing what they do as far as you can as a lay person, then thats a sensible approach

[eek]

Yeah. I like their approach so far. Waiting for detailed report now, but that seems a winner now despite higher fees.
So erm, do I risk or them ? And what is the "risk"?

Found the thread I was looking for

http://forums.contractoruk.com/accou...countants.html

might be worth a full read before signing on the dotted line...