I'm putting away 20% of my monthly income for corp Tax

[roadster198]

But what about NI and income tax what % should I be sticking away for this?

[51st State]

What salary are you paying yourself???

And 20% of what, exactly, are you "putting away" for CT?

[roadster198]

What salary are you paying yourself???

And 20% of what, exactly, are you "putting away" for CT?

Currently putting away 20% of my invoice amount for Corp Tax per month

[MrRobin]

Do you not have an accountant? Sounds like you need one!

You should put away 20% (21% in a few weeks time) of monthly profit. I.e.

Invoice amount + VAT charged - VAT payable - salary - employers NI - expenses

[r0bly0ns]

The answers will depend on what your needs are, what you are invoicing and what you want to do with your business.

You need to speak to an accountant.

[Ardesco]

At the moment I put aside 32% of my gross incoming to account for VAT and CT, this will go up to 33% in a couple of weeks.

Anything left over after I have paid VAT and CT is my bonus

[ratewhore]

But what about NI and income tax what % should I be sticking away for this?

Better than a lot of people do and you should be congratulated for that. Remember though that NI and PAYE will probably be paid quarterly so should be easier to account for.

[vhadiant]

But what about NI and income tax what % should I be sticking away for this?

The money in the company bank account is not your money. There's no point "putting away" x% as you literally can't.

It's only your money after you pay salary to you (which incur PAYE & NI) and/or you give yourself a dividend (which also incur personal tax).

This of course +/- expenses. Looks like you are in need of an accountant buddy. Go get one. It's less paperwork now by treating the money in your company bank account as your money (it isn't), but in actual fact you're only delaying the hassle to the end of the company year.

[tim123]

I know someone who treated his company Bank Account as his own money for his first few months in contracting.

He ended up having to fight of all his creditors when the VAT bill came because he'd spent all the VAT money.

tim

[miffy]

I know someone who treated his company Bank Account as his own money for his first few months in contracting.

He ended up having to fight of all his creditors when the VAT bill came because he'd spent all the VAT money.

That's hilarious! Totally reckless, but funny all the same!

I used to know a guy who just "dipped in" when he wanted something new (usually a substantial purchase like a plasma tv). He'd then leave the accountant to "sort it" as he put it

He also used to wind his company up every two years and just leave a few quid for the IR and VAT quoting that they should just "help themselves" to whats left

I'd never dream of that (I don't think I have the balls), but I can't help but laugh at other peoples recklessness.