What's your retention rate?

[skysies]

Wondering how I compare with the rest of you regarding the retention rate. Simple facts: operating through an LTD, monthly business expenses of around £500 per month, all claimable

My retention is around 72%. I heard some guys are ripping 80%, however I don't see how that can be done in a legit way, even with share splitting. I guess some are inflating their expenses, but that's not something I will consider.

[PerfectStorm]

80% is certainly doable legitimately

[Xiathorn]

I'm assuming you're taking everything, rather than leaving some in the company for lean years? I also assume that you're using company assets primary for the role, but are not opposed to occasional personal use?

If so, I'd hit 74% this year. I think I would have to be a bit creative to get 80%. My company also produces multi-media, and I could justify a 4k HDR TV to ensure that it looked right on such a setup, but I'm not quite at that stage yet with the product. Perhaps I will be next year.

[mudskipper]

It's an unanswerable question without knowing how you structure your company, what turnover and expenses you have, and what your future plans are.

I won't know until I extract all profits and close myCo down.

If you're earning a grand a month, it should be 100%. If you're earning 20K a month, probably somewhat less.

[l35kee]

I'm currently at 80.9% with a 50% shareholding split. Expenses are about £600 pm with mobile phone, childcare, lunches, accountant, milage, etc.

[psychocandy]

80% is certainly doable legitimately

Yeh I used to do about 82% if I remember correctly.

Minimal salary, fair bit of expenses, split divs with the mrs (so neither of us went into upper tax bracket).

Now inside IR35 PS using umbrella - dont ask its something like 51%.

[skysies]

I'm currently at 80.9% with a 50% shareholding split. Expenses are about £600 pm with mobile phone, childcare, lunches, accountant, milage, etc.

Care to recommend an accountant?

[BrilloPad]

Care to recommend an accountant?

If you think changing your accountant will make any difference you need serious help.

[radish2008]

Wondering how I compare with the rest of you regarding the retention rate. Simple facts: operating through an LTD, monthly business expenses of around £500 per month, all claimable

My retention is around 72%. I heard some guys are ripping 80%, however I don't see how that can be done in a legit way, even with share splitting. I guess some are inflating their expenses, but that's not something I will consider.

I think I read somewhere that permie retention is 68% - not much of a difference nowadays.

[l35kee]

I think I read somewhere that permie retention is 68% - not much of a difference nowadays.

Totally depends on the salary. Mine was about 72% as a permie. If I wanted the same take home as I get now with a permie salary, it would be about 60%.