Quote from brookson

[cojak]

Of course expenses are apart of take home pay! If the individual was permanent the expenses would need to come out of their net salary! Do you really work as an accountant for Crunch?

Please remember the T&C's of this forum. No rudeness or insulting of other posters.

[diseasex]

I've gone through the figures and 80% is spot on. Nixon Williams appear to be using 14.5% as flat rate scheme %.

Brooksons appear to be using 11% for flat scheme scheme % and have probably bunged in some other expenses through the back door, e.g. £4/week for use of home, £25/week for subsistence, used additional weeks on the expenses.

It is amazing in this day and age there are still people who fall for all these sales tricks. Give Brooksons a call and ask them to confirm all the expenses/weeks and take you through step by step take you through their calculation. 83% is unrealistic I'm afraid.

Also, never opt for an accountant referred to you by your recruitment agency.....

if i've fallen for this sales trick i wouldnt be here asking questions whether its a sales trick!

[WordIsBond]

Of course expenses are apart of take home pay!

Not really.

Expenses and taxes are both part of the cost of doing business. Neither stay in your pocket / bank account.

[JB3000]

Not really.

Expenses and taxes are both part of the cost of doing business. Neither stay in your pocket / bank account.

Try to work out who is better off:

Permie:
Net salary: £3000 - £200 of T&S

Contractor:
Net salary + Dividends: £3,000 + £200 T&S

"doing business" ......... LOL!!!! Give me a break!

[WordIsBond]

"doing business" ......... LOL!!!! Give me a break!

You may be a disguised employee, but I'm running a business. If a contract requires travel, or other expenditures, that reduces the contract proceeds, my profit, and my take-home pay. I don't say, "More expenses I can deduct and reduce my taxes!" and claim a higher take-home percentage.

I'd take a contract inside IR35 if the rate were high enough. I'd take one with travel costs or other expenses if the proceeds were high enough. It's the same computation. What percentage do I clear after expense/tax, and is the rate high enough to justify it? If it isn't, I can do without that contract.

If you just compare yourself to an employee, this might be hard to grasp. Tomorrow take someone in your employer's accounting department to lunch and ask them to explain it to you.

[JB3000]

You may be a disguised employee, but I'm running a business. If a contract requires travel, or other expenditures, that reduces the contract proceeds, my profit, and my take-home pay. I don't say, "More expenses I can deduct and reduce my taxes!" and claim a higher take-home percentage.

I'd take a contract inside IR35 if the rate were high enough. I'd take one with travel costs or other expenses if the proceeds were high enough. It's the same computation. What percentage do I clear after expense/tax, and is the rate high enough to justify it? If it isn't, I can do without that contract.

If you just compare yourself to an employee, this might be hard to grasp. Tomorrow take someone in your employer's accounting department to lunch and ask them to explain it to you.

Speak to your accountant with an open mind; it appears that you do not understand anything regarding take home percentages (which is what the original post was all about).

[Chris at CrunchAccounting]

Permie:
Net salary: £3000 - £200 of T&S

Contractor:
Net salary + Dividends: £3,000 + £200 T&S

By claiming expenses, your reducing your profit before Tax, reducing Corporation Tax and therefore dividends available is decreased.

For example - if turnover was £100,000 & Corporation Tax £20,000; there would be £80,000 available for dividends (or take home pay). Now add £10,000 expenses into the equation - Corporation Tax would now be £18,000 and dividends available is £72,000

[northernladuk]

Please remember the T&C's of this forum. No rudeness or insulting of other posters.

Calling someone an accountant for Crunch is insulting? 😁😁

Chris might be insulted by that lol

I know what you mean but made me smile that one.

[Chris at CrunchAccounting]

Calling someone an accountant for Crunch is insulting? 😁😁

Chris might be insulted by that lol

I know what you mean but made me smile that one.

Made me smile too

My credentials can be found here though (3rd person down)

#AAYP 2015: Accountancy Age's 35 under 35 - 20 May 2015 - Accountancy Age

[Jessica@WhiteFieldTax]

Made me smile too

My credentials can be found here though (3rd person down)

#AAYP 2015: Accountancy Age's 35 under 35 - 20 May 2015 - Accountancy Age

Ohh get you

Congratulations, I was under 35 once