• 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.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

What's your retention rate?

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

    What's your retention rate?

    Wondering how I compare with the rest of you regarding the retention rate. Simple facts: operating through an LTD, monthly business expenses of around £500 per month, all claimable

    My retention is around 72%. I heard some guys are ripping 80%, however I don't see how that can be done in a legit way, even with share splitting. I guess some are inflating their expenses, but that's not something I will consider.

    #2
    80% is certainly doable legitimately
    ⭐️ Gold Star Contractor

    Comment


      #3
      I'm assuming you're taking everything, rather than leaving some in the company for lean years? I also assume that you're using company assets primary for the role, but are not opposed to occasional personal use?

      If so, I'd hit 74% this year. I think I would have to be a bit creative to get 80%. My company also produces multi-media, and I could justify a 4k HDR TV to ensure that it looked right on such a setup, but I'm not quite at that stage yet with the product. Perhaps I will be next year.

      Comment


        #4
        It's an unanswerable question without knowing how you structure your company, what turnover and expenses you have, and what your future plans are.

        I won't know until I extract all profits and close myCo down.

        If you're earning a grand a month, it should be 100%. If you're earning 20K a month, probably somewhat less.
        Last edited by mudskipper; 2 December 2017, 23:31.

        Comment


          #5
          I'm currently at 80.9% with a 50% shareholding split. Expenses are about £600 pm with mobile phone, childcare, lunches, accountant, milage, etc.

          Comment


            #6
            Originally posted by PerfectStorm View Post
            80% is certainly doable legitimately
            Yeh I used to do about 82% if I remember correctly.

            Minimal salary, fair bit of expenses, split divs with the mrs (so neither of us went into upper tax bracket).

            Now inside IR35 PS using umbrella - dont ask its something like 51%.
            Rhyddid i lofnod psychocandy!!!!

            Comment


              #7
              Originally posted by l35kee View Post
              I'm currently at 80.9% with a 50% shareholding split. Expenses are about £600 pm with mobile phone, childcare, lunches, accountant, milage, etc.
              Care to recommend an accountant?

              Comment


                #8
                Originally posted by skysies View Post
                Care to recommend an accountant?
                If you think changing your accountant will make any difference you need serious help.

                Comment


                  #9
                  Originally posted by skysies View Post
                  Wondering how I compare with the rest of you regarding the retention rate. Simple facts: operating through an LTD, monthly business expenses of around £500 per month, all claimable

                  My retention is around 72%. I heard some guys are ripping 80%, however I don't see how that can be done in a legit way, even with share splitting. I guess some are inflating their expenses, but that's not something I will consider.
                  I think I read somewhere that permie retention is 68% - not much of a difference nowadays.

                  Comment


                    #10
                    Originally posted by radish2008 View Post
                    I think I read somewhere that permie retention is 68% - not much of a difference nowadays.
                    Totally depends on the salary. Mine was about 72% as a permie. If I wanted the same take home as I get now with a permie salary, it would be about 60%.

                    Comment

                    Working...
                    X