Basic limited company information

[rollonfriday]

Hi

I'm looking for some basic financial advice on limited companies.

If i know what i'm going to earn every month, what my expenses are and what my pension payments are, and how much i want to take home each month, is there a simple calculation that will work if the money left in the account is enough to pay all the taxes I will need to pay?

[Fred Bloggs]

You could try a Google for contractor calculator".

[Old Greg]

You could try a Google for "contractor calculator".

And have a look ath the contract guide links on the right of this page. Also the SJD website has excellent guides for free if you register.

If you need any detailed info on any subject at all, PM northernladuk, who is always very happy to help newbies with questions.

[Sockpuppet]

Hi

I'm looking for some basic financial advice on limited companies.

If i know what i'm going to earn every month, what my expenses are and what my pension payments are, and how much i want to take home each month, is there a simple calculation that will work if the money left in the account is enough to pay all the taxes I will need to pay?

You're thinking about this the wrong way.

You should be asking if there is enough left to pay your take home. Taxes come before take home, you're not PAYE now.

[NotAllThere]

Moved to a marginally safer area. Though the responses so far have been pretty much spot on.

[DaveB]

Hi

I'm looking for some basic financial advice on limited companies.

If i know what i'm going to earn every month, what my expenses are and what my pension payments are, and how much i want to take home each month, is there a simple calculation that will work if the money left in the account is enough to pay all the taxes I will need to pay?

If you are operating as a Ltd it goes like this.

You get paid against your invoice.
Deduct VAT ( assuming you are registered).
Deduct your legitimate expenses.
Deduct your salary.
Deduct employers NI
Deduct any employers pension contributions.
Calculate Corporation Tax on what is left and deduct that.
Distribute whats left after CT as dividends in whatever proportion you see fit based on your share distribution.

If salary + dividends doesnt cover your living expenses either spend less or find a better paying gig.