Wondered what % of your invoice you take home over a year after all tax, expenses have been paid.
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3150%-65%9.68%366%-70%19.35%671%-75%19.35%675% plus51.61%16 -
If I could work that out I would be an accountant!my ferret is your ferret -
Hmm.... define "take home". Are we talking about what is left after tax for those of us that leave the profit in the company.Comment
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How do the 75% plus people manage that, do you divert some divs to a partner etc ? Also do you take out enough to put you in higher tax band. Even if I pay myself min wage I would only be able to take max 67% - 68%.
Socket Puppet good questions, I would exclude what profit you leave in company. I worked out my take home % by looking at the calcs on my tax return showing total income, and tax owed, then factored in the corp tax the company paid on divs I recieved.Last edited by Bumfluff; 3 January 2008, 13:34.Comment
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%ge
Quickest way is to add all your tax (PAYE/CT), NIC, additional (40%) personal taxation (if applicable) from divis and any other non-claimable expenses (travel/hotels)
Total as a % ge of your net (exc vat) invoicing is the magical number. For anyone with a Ltd. Co. this should be around the 70% mark.Comment
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Diverting divis to a stay at home wife is making my figure look pretty good. I'm just doing mine and the Mrs self assessments now and I'm always a bit worried when it comes out that the taxman owes us !Originally posted by Bumfluff View Post
ps. decent whack into a SIPP also helps the %Comment
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Divis
Latest sound advice (in the wake of Arctic Systems case) is not to split divis 50/50 with your partner, but 70/30 or 80/20, This may bring the % ge to nearer the 70-mark.Comment
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mine is well below 75% because I use the money in the company for other ventures as well as paying myself.
Hopefully these other venture will eventually earn me enough money that I can only contract for beer money as and when it's needed!!
But then, don't we all wish for that...Comment
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Mine is above 75% because I don't earn silly amounts of money taking me into a higher tax band come year end... cunning eh.
Science isn't about why, it's about why not. You ask: why is so much of our science dangerous? I say: why not marry safe science if you love it so much. In fact, why not invent a special safety door that won't hit you in the butt on the way out, because you are fired. - Cave JohnsonComment
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Earning less is the best way. Keep it under £5K per year - 100% take home.Originally posted by gingerjedi View PostMine is above 75% because I don't earn silly amounts of money taking me into a higher tax band come year end... cunning eh.
If I'm out of work next financial year, then I'll have managed 75% by staying just out of the upper rate this year and paying a big dividend on April 6th.Will work inside IR35. Or for food.Comment
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