Take home pay %

[Zippy]

I'd have a look at your payslip and see if there is a figure for 'Employment costs'. If so, compare with Lisa's figures (Employer's NI). Still don't think that would account for the difference though.

[gbonner]

Thanks all for the replies.
It seems things are pretty much as they should be.

Looks like I will go down the ltd company route once my current contract has ended.

Although very trust worthy my wife has an income so wouldn't be worthwhile splitting the dividends.

With regard to dividends, can these be taken any time in real terms but must be at set intervals in the company books?

[warrenboon]

Thanks all for the replies.
It seems things are pretty much as they should be.

Looks like I will go down the ltd company route once my current contract has ended.

Although very trust worthy my wife has an income so wouldn't be worthwhile splitting the dividends.

With regard to dividends, can these be taken any time in real terms but must be at set intervals in the company books?

Still worth considering splitting the divs if your Mrs is below the higher rate threshold.

[northernladuk]

Thanks all for the replies.
It seems things are pretty much as they should be.

Looks like I will go down the ltd company route once my current contract has ended.

Although very trust worthy my wife has an income so wouldn't be worthwhile splitting the dividends.

With regard to dividends, can these be taken any time in real terms but must be at set intervals in the company books?

Best start reading the first timers guides and speak to an accountant before you start second guessing what you can and can't do in your LTD. For this one though you can declare and pay yourself a dividend as often as you want. Books have to show when they were taken... Now back to the newbie guides.

[DonkeyRhubarb]

You could join a scheme and get 85%.

Ok, I'll get my coat.

[kingcook]

Hello,
I started contracting a few months ago and have to say i'm a bit disappointed as my take home pay is about 55% of my invoiced value, I was always under the impression that it would be more.

For example (this is for 1 month):
Invoiced amount £10,000
Umbrella fee £140
Expenses £ 700

Take home pay approx £5,500.

I have started looking into the limited company set up.
Based on an invoiced amount of £10,000 I have worked out that take home pay will be about £6,700 per month.

Is this about right or is something going wrong somewhere?

Join Bolshie Bastard in his "Just say no to brollies!" campaign!

[kingcook]

Looks like I will go down the ltd company route once my current contract has ended.

I'd speak to an accountant about doing it mid-contract (not entirely sure if that's possible without causing the client/agency grief, i.e. having to terminate contract and doing a new one for limited company).

Or aim at doing it at renewal if it's on the cards (I did).

[northernladuk]

You could join a scheme and get 85%.

Ok, I'll get my coat.

I found one advertising upto 92.5% retention but won't bother posting it. Not worth the discussion.

[kal]

I found one advertising upto 92.5% retention but won't bother posting it. Not worth the discussion.

Wow 92.5%!!, first it was 85%, then 90%, those percentages keep going up and up, personally I'm waiting for the 'fully compliant, no risk, QC guaranteed IR35 proof solution' giving me 105% retention ... surely its only a matter of time?

[LisaContractorUmbrella]

I found one advertising upto 92.5% retention but won't bother posting it. Not worth the discussion.

So that's 7.5% for the umbrella company and sweet fanny adams for HMR&C - they won't like that