Reply to: Own LTD. Sharing 6 months of experience

[tuca]

I am on the same rate (550) and I take home around £8500. That's made up of salary, expenses and divi's. I have quite high expenses (travel to London, Oyster card) of around 700 / month plus the usual accounts, mobile etc.

I'm allocating just over a grand a month for higher rate tax, averaged over the year. If I take this into account and work on 7500 net then I get 68%. How are people achieving closer to 80%?

I assume these percentages are based on true net i.e. after accounting for higher rate tax rather than on pure take home if I do it on take home the figure is around 81%.

Based on my calculations ( more or less on same rate ) I come to same conclusions. I'd say on Invoiced I end up paying between 32-34% Tax.
Still not bad , I guess with a PAYE Umbrella I'd have to add all the NI contributions I save with Dividends ?

[gadgetman]

I am on the same rate (550) and I take home around £8500. That's made up of salary, expenses and divi's. I have quite high expenses (travel to London, Oyster card) of around 700 / month plus the usual accounts, mobile etc.

I'm allocating just over a grand a month for higher rate tax, averaged over the year. If I take this into account and work on 7500 net then I get 68%. How are people achieving closer to 80%?

I assume these percentages are based on true net i.e. after accounting for higher rate tax rather than on pure take home if I do it on take home the figure is around 81%.

[dude69]

As some of you I was working under Giant umbrella until Labours decided they need more cash to fund their mega-project to bringing the country into havoc.

Is that you Vlad?

[Hevra]

This thread is going places. I'm not sure where, but I'm too scared to think about it any more.

NotAllThere - love your eloquent, verbacious, wordy post

Hevra

[maxima]

OK, it's late-ish Saturday evening. I'm over the drink drive limit (but not so drunk I'm falling downstairs or even just falling regardless of whether or not stairs are in the vicinity).

I despair. I really do despair. The yoof of today - huh! I also wonder if he's actually a troll..

Mmmm... Are you afraid of trolls? Do you want me to be _your troll?

[maxima]

ah sorry. to be looking galmoruos and witty I need to add my new signature:
---------------------------------------------------------------
Una margarita y una chica porfabor...

[maxima]

the bubble for loser was never existed in first place. And will never do...

ciao

[exbrm]

Portugal is cheap I hear ! ...............

Tente desligar e ligar novamente, em seguida,

[exbrm]

"I despair. I really do despair. The yoof of today - huh! I also wonder if he's actually a troll.. "

Glad it's not just me - refrained from butting in earlier because I'm not "full blown IT - and a bit of an old git! But it seems incedible that such a dumbskull can earn over 10K (yes ten) a year. The bubble will soon burst for you guys if this is the calibre of home grown "talent".

[miss marple]

OK, it's late-ish Saturday evening. I'm over the drink drive limit (but not so drunk I'm falling downstairs or even just falling regardless of whether or not stairs are in the vicinity). So I can forgive myself for not being quite as coherent or able to understand things as much as usual. I hope you lot do too.

But, I'm having real problems with Max's posts/figures/philosophy. It seems to me that he wants to take everything out of the limited company NOW.
And he's fretting over whether he gets an extra 2% saving (of what?) compared with when he was with a umbrella.

He seems to have no concept of 'running a business' i.e. the invoices you create are invoices which generate income for THE COMPANY. Not him as an EMPLOYEE of that company. His COMPANY can pay his tube fares for legitimate travel to work from home and back. His COMPANY can pay for a computer for him (and his company secretary/fellow director) to use for COMPANY business. Ditto a small proportion of expenses such as heat and light if his COMPANY has an office based presence (e.g. spare room) at his house.

He also seems to have no concept of allowing his company to build up reserves to cover its employees (of which he is one) through lean times.

I despair. I really do despair. The yoof of today - huh! I also wonder if he's actually a troll..

[NotAllThere]

Thanks aren't necessary. I just live on the warm glow of a job well done.

[maxima]

and you are.. Oh my god! Shri Padmasambhava!

thank you great guru! you saved my miserable life

[NotAllThere]

I entirely, totally, thoroughly, utterly, wholly, purely, altogether, undeviatingly, outright, absolutely, unequivocally agree with you.

How does your statement change my situation?

Now you've realised the errors of your ways, you can change.

[maxima]

I travel to and from work each day, only about 20 miles claim odds and sods fro stationary etc - no big purchases and still get to take home OVER 80% of the value I invoice.

80% makes a hude difference. Is it included your end-of-year tax return?

When I was under giant and was traveling 120 miles a day, claiming subsistence - I was getting 78% and plus tax return.

How do you do 80% on 20 miles a day? I understand it is a sensitive question.. I wouldnt mind if you wont answer.

[maxima]

I entirely, totally, thoroughly, utterly, wholly, purely, altogether, undeviatingly, outright, absolutely, unequivocally agree with you.

How does your statement change my situation?