Which Accountant

[Wanderer]

In all of the examples there is a percentage that you get as "take home", HMRC get the rest. I'm not an accountant but the amounts seem to be at least ball-park correct.

This one is interesting though:

Freelancer Strategy
82.00%
£4,027.63
£44,280

The worker gets 82% take home. What happens to the other 18%? Specifically, how much of this 18% goes to HMRC and how much goes to the scheme operator or some other tax jurisdiction?

[malvolio]

In all of the examples there is a percentage that you get as "take home", HMRC get the rest. I'm not an accountant but the amounts seem to be at least ball-park correct.

This one is interesting though:



The worker gets 82% take home. What happens to the other 18%? Specifically, how much of this 18% goes to HMRC and how much goes to the scheme operator or some other tax jurisdiction?

It looks like the numbers are worked on £54k gross. If 15% of the gross goes to the scheme, there's £45,900 left - which don't leave much for the taxman...

The point is that the £44280 is still liable for tax at some point, even if it's on your deathbed...

[Danielsjdaccountancy]

Depending on your day rate and good tax planning you can achieve 80% in the lifetime of your Limited company anyway, that way eliminating the risk of jail!!