Simple maths problem: Take home pay

[NotAllThere]

i try to live off an annual salary of average day rate * £1,000.

Then at year end, anything left over goes into the pot for the shareholders party

So, if your average day rate is £500, you go for an annual salary of £500,000. Neat trick.

[ASB]

495*5*47= £116k

Salary = £10k PAYe = £2k
Expenses = £20k

Bal = £84k - CT = 17.5k = £66.5

So you get 66.5k + 10k = 76.6k [ or about 66% ]

Don't forget though, out of your £20 expenses you will probably have some benefit from [ meals & subsitance, nice new laptop etc etc ], so over all you probably actually get some where in the region on 80k which
is nearer 70%.

If the 66.5k is paid as a dividend then there is about 10k of personal higher rate tax to pay as well (assuming there is no other income for the OP and they pay all the dividends to themselves).

[Bluebird]

If the 66.5k is paid as a dividend then there is about 10k of personal higher rate tax to pay as well (assuming there is no other income for the OP and they pay all the dividends to themselves).

yes quite right, as an income shifting bigamist I don't take that into account....

[stingman123]

What do you mean by 50/50 split?

2K a week in the business, 1K stays in the business and 1K to me

[Bluebird]

2K a week in the business, 1K stays in the business and 1K to me

how do you pay the £1k to you?

[stingman123]

how do you pay the £1k to you?

As a weekly wage, it puts me into the higher tax bracket, but I honestly cannot be ars*d with "wage shifting" and the like

[Bluebird]

As a weekly wage, it puts me into the higher tax bracket, but I honestly cannot be ars*d with "wage shifting" and the like

Fine, I guess if you want to pay more tax than you need to why not?

But don't forget that Tax Avoidance is a recongnised legal practice - heck most of the MPs do it to some degree.

Tax evasion, however is different.

By the time you take account of pensions, holidays & sickness I would have though you'd be better off doing a permie job...

[hyperD]

As a weekly wage, it puts me into the higher tax bracket, but I honestly cannot be ars*d with "wage shifting" and the like

Ironically, if you paid an accountant to look after your books, you would take home more than you are doing now. It might be worth checking out, because when times are tough, looking back and saying "I couldn't be ar$ed with "wage shifting"" may turn out to be a day of sad reflection.

[max]

As a weekly wage, it puts me into the higher tax bracket, but I honestly cannot be ars*d with "wage shifting" and the like

have you considered improving you finances, taking the money you'd have been taxed and doing something useful with it? Maybe roll your smokes with £20 bills perhaps. Got to be less wasteful than letting Prudence get his mits on it.

[stingman123]

Ironically, if you paid an accountant to look after your books, you would take home more than you are doing now. It might be worth checking out, because when times are tough, looking back and saying "I couldn't be ar$ed with "wage shifting"" may turn out to be a day of sad reflection.

Problem is (and I am only beginning to realise it) Is that is was an accountant that suggested a 50/50 split!

Maybe I need help after all?