Quote from brookson

[diseasex]

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

[Kenny@MyAccountantFriend]

The percentage seems a little high for a Ltd company but will depend on how the company is structured. (Partner drawing salary and dividends possibly)

Although potentially achievable with a salary and dividends it is highly unlikely in reality due to other expenses that you will incur and if you want to draw dividends into the higher rate tax bracket.

[diseasex]

The percentage seems a little high for a Ltd company but will depend on how the company is structured. (Partner drawing salary and dividends possibly)

Although potentially achievable with a salary and dividends it is highly unlikely in reality due to other expenses that you will incur and if you want to draw dividends into the higher rate tax bracket.

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?

[Alan @ BroomeAffinity]

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.

[diseasex]

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.

That's very useful advice.
Thanks

[diseasex]

That's very useful advice.
Thanks

Brookston quoted me on 83% take home whereas Nixon Williams 80.1. That's like 2000+ difference , how can that be?
Based on 300pd
25 miles
10 a day expenses
230 days

[TheFaQQer]

Brookston quoted me on 83% take home whereas Nixon Williams 80.1. That's like 2000+ difference , how can that be?

Why not ask them for a detailed breakdown for your situation?

Since tax levels aren't going to change from one accountant to another, clearly the assumptions they are making differ.

As a starter, Brookson are more expensive than NW, so where are their additional returns coming from?

[eek]

Brookston quoted me on 83% take home whereas Nixon Williams 80.1. That's like 2000+ difference , how can that be?
Based on 300pd
25 miles
10 a day expenses
230 days

Because accountants take different amounts of risk. Brookson have shall we say a reputation based on how they used to work..

You need to speak to a few accountants and decide whether you like their approach.

[diseasex]

Because accountants take different amounts of risk. Brookson have shall we say a reputation based on how they used to work..

You need to speak to a few accountants and decide whether you like their approach.

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"?

[northernladuk]

I think the wording is key and I suspect you haven't copied it verbatim. If they guarantee that then walk away. It's possible so if it said 'up to 83%' I'd breath a little easier. They don't know your situation and what could impact that take home figure, if they ignore that and guarantee it them something is wrong. If they are just quoting the max figure that's possible but really it will be different depending on circumstances then that seems a bit more realistic.

Either way, I'd take that figure very seriously and investigate properly. I'd personally go with an accountant that delivers me a good solid service I can trust rather than chasing a few percent on take home.

Risk is it is you will get knobbled for the extra tax and possibly fines that you should have paid on anything that you shouldn't be claiming.