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Previously on "What's your retention rate?"

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  • cojak
    replied
    Originally posted by PerfectStorm View Post
    80% is certainly doable legitimately
    With pension contributions?

    Leave a comment:


  • blackeye
    replied
    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?

    Leave a comment:


  • northernladyuk
    replied
    Originally posted by Lance View Post
    I 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'
    That will be why he's moved to Ireland.

    Leave a comment:


  • northernladyuk
    replied
    Originally posted by stek View Post
    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....

    Leave a comment:


  • Lance
    replied
    Originally posted by stek View Post
    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....
    I 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'

    Leave a comment:


  • stek
    replied
    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....

    Leave a comment:


  • northernladyuk
    replied
    Originally posted by psychocandy View Post
    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%.
    Are you including your working tax credit in that?

    Leave a comment:


  • Scruff
    replied
    Originally posted by mattfx View Post
    I 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.
    Doubles your entries, too [emoji41]

    Leave a comment:


  • mattfx
    replied
    Originally posted by Boo View Post
    Yes, that or a new accountant...

    Boo
    I 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.

    Leave a comment:


  • Boo
    replied
    Originally posted by BrilloPad View Post
    If you think changing your accountant will make any difference you need serious help.
    Yes, that or a new accountant...

    Boo

    Leave a comment:


  • l35kee
    replied
    Originally posted by skysies View Post
    Care to recommend an accountant?
    Nothing to do with them really lol. I can promise you I haven't done anything special..!

    Leave a comment:


  • l35kee
    replied
    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%.

    Leave a comment:


  • radish2008
    replied
    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.

    Leave a comment:


  • BrilloPad
    replied
    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.

    Leave a comment:


  • skysies
    replied
    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?

    Leave a comment:

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