Operating Profit Rate

[PhilAtBFCA]

kaiser78

Its a good question but slightly difficult to answer as it depends so much on your operating costs, i.e. expenses.

Your figure also may include or exclude higher rate tax payable on your dividends from your company, i am not sure, but this does need to be factored in.

It maybe be better to focus on your sales rate being enough, the tax rate, theoretically affects everyone the same, but means you have more money is your sales rate and so your skills and negotiation skills , just an idea ?

Phil

[HairyArsedBloke]

For a standard IT Ltd Company setup what is a good operating/trading profit rate ?

My current set of accounts comes out at 75% (outside IR35 of course) - is this roughly what one would expect ?

Thanks

No. Aim for zero.

You are not finding enough expenses.

[kaiser78]

For a standard IT Ltd Company setup what is a good operating/trading profit rate ?

My current set of accounts comes out at 75% (outside IR35 of course) - is this roughly what one would expect ?

Thanks