Limited Company how is 70%-75% of Gross receivable as net pay ?

[TheGoat]

I've got no experience of ever having contracted using a straight 'limited company', I heard it said that it is possible to obtain 70%-75% of gross as net pay if you pay yourself in dividends etc.

Is this really true ? what are the risks ? is this legal and above board ? Will Hector quiz this ?

Could you point me in the direction of accountants who can achive this ?

cheers for any info, I've operated using umbrella companies and the net received sucks as I don't really claim any expenses.

[SueEllen]

Do some more research.

The answers are out there.

Maybe you should look at some of the information those accountants provide.

[Another Dodgy Agent]

I've got no experience of ever having contracted using a straight 'limited company', I heard it said that it is possible to obtain 70%-75% of gross as net pay if you pay yourself in dividends etc.

Is this really true ? what are the risks ? is this legal and above board ? Will Hector quiz this ?

Could you point me in the direction of accountants who can achive this ?

cheers for any info, I've operated using umbrella companies and the net received sucks as I don't really claim any expenses.

This is based around not having to pay NI on dividends, I suggest you talk to a good accountant for non biased advice.

[TheGoat]

This is based around not having to pay NI on dividends, I suggest you talk to a good accountant for non biased advice.

is the not paying NI on dividends dodgy ?

[moorfield]

In my last financial year I took 72% net profit - but I'm one of those dirty income shifters that people don't like.

[TheGoat]

moorfield how did u do it !!

[blacjac]

is the not paying NI on dividends dodgy ?

Do some basic reasearch

[Lewis]

I've got no experience of ever having contracted using a straight 'limited company', I heard it said that it is possible to obtain 70%-75% of gross as net pay if you pay yourself in dividends etc.

Is this really true ? what are the risks ? is this legal and above board ? Will Hector quiz this ?

Could you point me in the direction of accountants who can achive this ?

cheers for any info, I've operated using umbrella companies and the net received sucks as I don't really claim any expenses.

Completely legal. Take a look at the calculators here ...

http://calculator.contractoruk.com/
(e.g. target income calculator)

You pay a minimum salary which minimises PAYE and NI. You take the rest as dividends which have a lower tax rate. You register for Flat Rate VAT which usually gives you a slight profit over being non-VAT registered. If you have a non-working partner you can benefit buy paying them dividends but probably only till April.

[NotAllThere]

is the not paying NI on dividends dodgy ?

No, because there's no NI due on dividend income. That's the whole point!

[PhilAtBFCA]

Limited Company - basics

If it helps we have an ebook "The Blevins Franks Guide To Running A Microbusiness" which will explain all this. ( A Microbusiness has less than 10 employees ). Register on the website and download from the Business Library from the folder Tax Documents and Tools. There is also a Spreadsheet there where you can enter your Conract Income and it will compare Ltd Co inside IR35 and Outside against PAYE, Agency PAYE, Umbrella and partnerships.