• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.

London perm salaries

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #61
    Originally posted by LondonPM1 View Post
    But all of this is completely off topic = I d love to hear how others with passive income have reduced legally their perm salary tax liability without the use of a wife (which I dont have) or pension (which I am nervous to do )
    I run side projects and BTL through their own Ltds, pretty basic stuff.

    Comment


      #62
      Originally posted by LondonPM1 View Post
      Thank you Eek - I guess my final question is what tax optimisations are there for perm salaries. Is it really only pension salary sacrifice and is that what most people do - There is no way I am working to hand over 55% of 100K to the government

      I d be better off learning plumbing or doing something which is through the LTD then work for that kind of salary and pay that kind of tax
      Don't worry about it - after the next budget even salary sacrifice to a pension won't work for you - that's likely to be cut to an allowance of 20%...
      merely at clientco for the entertainment

      Comment


        #63
        But all academic. You won't get £100k in this market anyway.
        And there is the solution. Get a lower paid job and have a lower tax rate!

        Or sell your property portfolio, and live off the capital.
        Down with racism. Long live miscegenation!

        Comment


          #64
          Originally posted by NotAllThere View Post
          And there is the solution. Get a lower paid job and have a lower tax rate!

          Or sell your property portfolio, and live off the capital.
          I was more thinking of not working in the Uk again as perm. That I think is the ultimate conclusion from this discussion.

          And woe be tied anyone who tells me 120k is better than 650 outside

          Comment


            #65
            Originally posted by BlasterBates View Post
            No it won't make someone wealthy who has a wife and two kids and the wife has never worked, but then again London has always been like that.

            There are plenty of people who are happy to work for 100K and live in London. Those who have kids and the wife doesn't want to work will probably have to move somewhere else. Not a problem.

            People I know who were brought up in London all live somewhere else.
            I don't.
            "You’re just a bad memory who doesn’t know when to go away" JR

            Comment


              #66
              Originally posted by LondonPM1 View Post
              Thanks just for clarity - I mean putting mother and father on payroll as company secretary for 12.5K each and using their personal allowance - Rather than wife or kids.

              Sorry if I confused you
              Not confused at all, it's you that doesn't understand the actuality. Doing what you suggest will be picked up by HMRC and you will either get done for evasion or have to pay the taxes as though it were your income. And either way the money doesn't come back to you.

              I understand what you're trying to achieve, but this way simply doesn't work, no matter how pure your intentions.

              And, just to be even more picky, small companies no longer need a CoSec, and there should only be one anyway.
              Blog? What blog...?

              Comment


                #67
                Originally posted by LondonPM1 View Post
                I was more thinking of not working in the Uk again as perm. That I think is the ultimate conclusion from this discussion.

                And woe be tied anyone who tells me 120k is better than 650 outside
                It's not better straight up, just depends how you price the risk of contract work.

                Years ago you could say what risk? I've been working 250 days a year for years..... But can't exactly say that anymore can you?

                Comment


                  #68
                  Originally posted by LondonPM1 View Post
                  This means my monthly take home from the 100K dream job is 3,895....
                  I don't get it - what's the problem? You get an extra £3.8k a month on top of whatever your rent-seeking gains you. If you didn't have extra income, you'd be getting £5.5k a month from the £100k job. I hate to break it to you, but most people who live and work in London do so on far less, and frankly many of them work far harder than we do. This is the new reality that we might all have to get used to if the gravy days are truly behind us. £50k a year still considered a decent salary by many and no, you won't be living in a 5 bedder in Balham.

                  Comment


                    #69
                    Originally posted by jayn200 View Post
                    It's not better straight up, just depends how you price the risk of contract work.

                    Years ago you could say what risk? I've been working 250 days a year for years..... But can't exactly say that anymore can you?
                    Thanks on reflection my statement that from a 100K salary my take home of 3.9k is rather generous because:

                    1) I have to take £10 a day for underground from zone 3
                    2) I have to buy Pret lunch and two coffees costing £10

                    So that means I have daily expenses of £20 or £400 a month - My 3.9K salary is in fact 3.5K now

                    You are completely right that the days of of 650 a day for many years with one employer are likely over - But when you realise that you are working under stress and pressure for 3.5K a month (175 a day after tax) it does make it hard to swallow especially when plumbers and electricians are regularly charging that for cash in hand work

                    I d also add that I would prefer to work for 650 a day for six months a year because at least that way I can do my own thing during the rest of the year if you see what I mean rather than be chained for a full year of work for that equivalent take home

                    When I was contracting I would never take holidays whilst on contract instead preferring to take it whilst I was on the bench - As it happens i never had any bench for six years straight but i accept these days are different

                    Its horses for courses - I still remain convinced that the 650 a day is better from an overall work life quality and take home point of view but it can be argued based on a number of parameters abnd variables

                    Comment


                      #70
                      Originally posted by mattster View Post
                      I don't get it - what's the problem? You get an extra £3.8k a month on top of whatever your rent-seeking gains you. If you didn't have extra income, you'd be getting £5.5k a month from the £100k job. I hate to break it to you, but most people who live and work in London do so on far less, and frankly many of them work far harder than we do. This is the new reality that we might all have to get used to if the gravy days are truly behind us. £50k a year still considered a decent salary by many and no, you won't be living in a 5 bedder in Balham.
                      I know and I hear you - I guess getting used to 13K plus VAT hitting your business account each month for many years has completely warped reality and it does make you ponder - I m not going to say that I wouldnt get out of bed for 3.8K but it hardly buys you what many people would think a 100K salary does

                      Anyway now I have done the maths and I ve checked its correct I can use the data to decide which way to proceed and whether it is worth working as perm

                      Comment

                      Working...
                      X