Working both perm and contracting - best payment method

[Old Greg]

Ooooh. Get the new guy. Closing threads off with his first post. Let's get this in General and see what he's really made of!!

I wouldn't trust an accountant who thinks that £8,404-£1,601 = £6,823.

[northernladuk]

I wouldn't trust an accountant who thinks that £8,404-£1,601 = £6,823.

Love the numbers post. Always a complete **** up

[Old Greg]

Love the numbers post. Always a complete **** up

You only get one chance to make a first impression, and accountants absolutely have to get the basics right. It's simply not negotiable.

[Hewitt Accountancy Ltd]

Oops, mye fisrt psot and I cantt even tipe prorperly!

Doh. Red face all round!!

Indeed, it should have been the usual limited company contactor salary for 18/19 of £8,424...

Lesson learnt - don't manually retype workings from excel! Humble pie fully eaten and sincere apologies given to all.

[Old Greg]

Oops, mye fisrt psot and I cantt even tipe prorperly!

Doh. Red face all round!!

Indeed, it should have been the usual limited company contactor salary for 18/19 of £8,424...

Lesson learnt - don't manually retype workings from excel! Humble pie fully eaten and sincere apologies given to all.

Too little, too late.

[northernladuk]

3..

[Old Greg]

3..

If he can count that far.

[NotAllThere]

I wouldn't trust an accountant who thinks that £8,404-£1,601 = £6,823.

I don't trust an accountant who can't tell me what is in pounds shilling and pence.

[WordIsBond]

He got the essential point:

WordisBond is pretty darn close TBH.

Everything else is insignificant.

I particularly liked this part, though:

Assuming you keep your overall earnings below the higher rate threshold, then taking a salary of £8,404 saves £8,404*19% = £1,601 of Corp Tax, and reduces the amount you have available to take in dividends from the Company by £8,404-£1,601 = £6,823.
The increased income tax on the salary is £8,404*20% = £1,685, and the reduced income tax on the lower dividends is £6,823*7.5% = £512.
so overall the net saving per annum is +£1,601 - £1,685 + £512 = £428.

Of course, £8404*19% is not £1601, it is £1596.76. And £8404*20% is £1681 not £1685. Etc. Well, of course, he calculated using the right number, £8424, rather than £8404.

So the analysis looks spot on, but Pete found a way to look like he was messing it up in the process while still getting it right. Well done! That's a special skill. Sometimes I wonder if that's the way Donald Trump is running the most powerful country in the world. Get a lot of things right but make the whole thing look like a mess. Maybe Pete is Trump's accountant?

[Old Greg]

He got the essential point:

Everything else is insignificant.

I particularly liked this part, though:

Of course, £8404*19% is not £1601, it is £1596.76. And £8404*20% is £1681 not £1685. Etc. Well, of course, he calculated using the right number, £8424, rather than £8404.

So the analysis looks spot on, but Pete found a way to look like he was messing it up in the process while still getting it right. Well done! That's a special skill. Sometimes I wonder if that's the way Donald Trump is running the most powerful country in the world. Get a lot of things right but make the whole thing look like a mess. Maybe Pete is Trump's accountant?

More likely to be suity's. Who wants to have to check their accountant's sums?