Contractor pay?

[northernladuk]

No. That's 45p less profit in the company, which after CT is 36p less dividend available to pay out to your pocket.

Unless somehow you manage to run a car for under 9p/mile* there's no free money.

Basically, what Stek said.

* on fuel costs alone you'd need to be doing 70mpg+

Good points. I think the OP's rose tinted glasses are slowly slipping down his nose and will soon fall in the mud.

[LisaContractorUmbrella]

Has anyone mentioned IR35 to the OP???

[cojak]

Has anyone mentioned IR35 to the OP???

[psychocandy]

1. Just take dividends this tax year - if you don't get what that entails speak to your accountant. As an employer and an employee you will pay both EE and ER NICs, roughly 25% if you go the Salary route plus most likely 40% tax. So 65%. Contracting for the money?

2. Yes, but you're only saving the CT, not the full expense cost. Also the expenses are coming out of your/the Co's pocket, so fundamentally the more you spunk out, the lower your war chest for when you're benched - and you will be.

3. No, you're only saving the CT, not the full expense cost. £80 in this case.

Accountant first.

1. WHS. This is what I did.

[TheCyclingProgrammer]

There is no free money. (Well there is if you're on flat rate VAT, but let's not confuse the issue...)

Flat rate VAT surplus isn't really free money either, as its purpose is to cover any input VAT you would have normally reclaimed on the standard scheme.

To work out your true profit from the flat rate scheme, you should deduct all of your input VAT for the year first.

True, for most of us, there will be a profit, but it can disappear quickly if you make a lot if VATable expenses (or use VAT registered subcontractors).

[LisaContractorUmbrella]

OP have you read up on IR35?? If not you can ignore most of the comments on this thread for the time being