Originally posted by PerfectStorm
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Reply to: What's your retention rate?
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Previously on "What's your retention rate?"
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Retention rates are completely arbitrary
If you make £15k a month.
1. Draw a £700 salary and £2500 dividends and expense £500, then you have a mad hot retention rate.
2. Same as above but take £5k dividends, your retention rate drops substantially.
2. is better off every month because he has around £2k more to spend (lets say pays £500 more in tax). He can afford a large mortgage, so lives in a nice area. Better car. Better holidays. Better life?
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Originally posted by Lance View PostI used to work with a Windows guy who did similar. When asked if he thought it was risky he just said 'nah. I just start a new LTD every year so they'll never find me'
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Originally posted by stek View PostNew contractor chap here in Dubs has an Irish Ltd, freely tells all and sundry he employs his wife and three kids who transfer the money back to him, pays zero tax.
He's Windows though....
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Originally posted by stek View PostNew contractor chap here in Dubs has an Irish Ltd, freely tells all and sundry he employs his wife and three kids who transfer the money back to him, pays zero tax.
He's Windows though....
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New contractor chap here in Dubs has an Irish Ltd, freely tells all and sundry he employs his wife and three kids who transfer the money back to him, pays zero tax.
He's Windows though....
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Originally posted by psychocandy View PostYeh 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%.
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Originally posted by mattfx View PostI heard if you have a wife who's qualified as an accountant you can claim her on expenses - at least £500/month. Someone on a forum somewhere said £1000 - may as well go big.. That'd help your retention some.
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Originally posted by Boo View PostYes, that or a new accountant...
Boo
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Originally posted by radish2008 View PostI think I read somewhere that permie retention is 68% - not much of a difference nowadays.
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Originally posted by skysies View PostWondering 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.
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