%age take home pay

[firehawk]

given the unfortunate economic crises, I've been out of work for 2.5 months and finally just secured a 6 month contract but unfortunately REALLY low pay. not happy but hey, at least its income right?

I am wondering if anyone can tell me what my take home pay would be after these calculations, usually I would take home around 76-78% and leave the rest aside for the tax man/expenses/NI. I take the rest as dividends and usually pay 20% corp tax

daily rate: £150/day (ex VAT, I am VAT registered but this is added on top of this figure)
monthly expenses: around £520 (season travel ticket, email server, web server, business mobile phone)

P.S - I am outside IR35
thanks.

[chris79]

Roughly..

Total income
minus expenses
minus PAYE wage
minus corp tax

= dividend (+ PAYE wage) = take home pay

Take home pay / total income = % of company earnings.

[Metal Mickey]

given the unfortunate economic crises, I've been out of work for 2.5 months and finally just secured a 6 month contract but unfortunately REALLY low pay. not happy but hey, at least its income right?

I am wondering if anyone can tell me what my take home pay would be after these calculations, usually I would take home around 76-78% and leave the rest aside for the tax man/expenses/NI. I take the rest as dividends and usually pay 20% corp tax

daily rate: £150/day (ex VAT, I am VAT registered but this is added on top of this figure)
monthly expenses: around £520 (season travel ticket, email server, web server, business mobile phone)

P.S - I am outside IR35
thanks.

I am not sure that there is enough information here for a full answer.

Obvious points for me are:

• Do you pay yourself any salary and if so is this above or below the threshold for NI? You mention NI as a deduction.
• Are you on the flat rate VAT scheme?
• I think that Corporation Tax will have been 21% since April 2008.
• Do you have no accountancy fees at all?

I'm sure that there are other things to take account of that have bypassed me.

But as previously stated, you add up all your invoices, take off the expenses and that is your profit.

Multiply your profit by 79% and that is the net dividend that you can pay yourself. I have a spreadsheet to do that for me (actually the accountant supplied it).

[BlasterBates]

My advice don't go for "tax efficient" solutions.

It aint worth it.

Pay normal tax with Ltd and avoid IR35.

That is an acceptable level of risk.

Lot of contractors still piling into loans schemes. All you need is a judge to deem thes as not loans and your sunk.

[firehawk]

thanks

yes I do have accountancy fees which is not included in that list, so add £154 for that / month.

The only wage I pay myself is on a per contract basis - thats it. NI is usually around £150 for me I think, give or take.

I am on a flat VAT scheme.

[Robot]

thanks

yes I do have accountancy fees which is not included in that list, so add £154 for that / month.

The only wage I pay myself is on a per contract basis - thats it. NI is usually around £150 for me I think, give or take.

I am on a flat VAT scheme.

You could make a big saving on the accountancy fees, if you moved accountants or threaten to move from them.

[Alan @ BroomeAffinity]

You could make a big saving on the accountancy fees, if you moved accountants or threaten to move from them.

WHS.

If the accountants were worth that, you wouldn't need to ask these questions on a forum.

[firehawk]

sorry for asking then!
these forums should also come down then shouldn't they?

I come here asking a simple question .... nothing else, if you arent going to help - move along and stop lashing out at other people for your misfortunes

[Pickle2]

sorry for asking then!
these forums should also come down then shouldn't they?

I come here asking a simple question .... nothing else, if you arent going to help - move along and stop lashing out at other people for your misfortunes

Dude, you are massivley overpaying for your accountants. I think that was his (helpful) point.

[AZZIK]

thanks

yes I do have accountancy fees which is not included in that list, so add £154 for that / month.

The only wage I pay myself is on a per contract basis - thats it. NI is usually around £150 for me I think, give or take.

I am on a flat VAT scheme.

£154! Who are you with?! Change accountants - fees should be half that