Take home pay percentage

[pmeswani]

Sunday solution Barstewards have got hold of my mobile number somehow and pester me all the time

When they contacted me about 7 months ago, they tried to sell me a story that my accountant were trying to get me to use an EBT even though told them I was not. They even found a post on here regarding the accountant which was over 6 months old (at the time). I did a search on here for Sunday Solutions and found more problems with them than the accountant I am with now. I told them to take my details off (or at least put a note on my records not to contact me) otherwise I would be taking them to court. Not heard from them since, apart from the odd spam mail here and there.

[BolshieBastard]

That theo has been pestering me. Time to tell him to fe ck off I think.

[Andy2]

Sounds like you've been contacted by Sunday Solutions!

Sunday solution Barstewards have got hold of my mobile number somehow and pester me all the time

[Alan @ BroomeAffinity]

If you limit dividends to not cross the higher tax rate, are there any guides on CUK about what to do with the rest?

three options really:

1) Withdraw the money in a tax year when your earnings are low therefore limiting the higher rate tax exposure;

2) Store it up and take entrepreneur's relief when you close the company down;

3) Stick it into a pension.

Remember the company will stay pay CT at 21% using option 1 or 2

[BolshieBastard]

Sounds like you've been contacted by Sunday Solutions!

[d000hg]

If you limit dividends to not cross the higher tax rate, are there any guides on CUK about what to do with the rest?

[Alan @ BroomeAffinity]

Having now read the OP I see that the rate is shown. At £500 per day, 75% is unrealistic without a bot of forward planning (pensions / not taking all out etc.) I have plugged the figures in to my system and can get 68% without making any adjustments.

[Advocate]

It depends of course on a number of factors. The most important of which is your rate which will determine how much of your income is exposed to higher rate tax. You need to take into account how much your expenses are; what VFRS rate you will be operating; how much of a salary you want to take.

Best bet is to speak to an accountant. PM if you want a hand.

In the interests of objectivity, remember you can also contact any of the other accountants that post here or are recommended.

You can also contact accountants that don't post here and ones that aren't recommended at all.

[Alan @ BroomeAffinity]

It depends of course on a number of factors. The most important of which is your rate which will determine how much of your income is exposed to higher rate tax. You need to take into account how much your expenses are; what VFRS rate you will be operating; how much of a salary you want to take.

Best bet is to speak to an accountant. PM if you want a hand.

In the interests of objectivity, remember you can also contact any of the other accountants that post here or are recommended.

[ChimpMaster]

If you're only going to use your tax allowance (i.e. not your wife's) then you're probably looking at around 65% to 68% with a few expenses thrown in. Now that's assuming you pay yourself a reasonable salary of £15k (as opposed to minimum wage) and then take out all income as dividends.

You could just take out money up to the 40% tax bracket limit, and then keep the rest in there until you aren't earning or want to close the company down etc. There are ways to reduce your tax burden if you don't need to take out all the funds every month/year.

[Hex]

Hi Mike, I'm new to contracting, so as yet I don't have an idea of expenses etc.

Why not put in 0 for the expenses then and take that as a worst case scenario?

[TykeMerc]

Can you give me an indication of the expected take home pay as a contractor. I'm being offered a position at £500 per day.

Is a take home rate of 75% an achievable average with a good accountant?

I would say that 75% is a bit ambitious, it all depends how you take it home (salary, tax NI, Employers NI, dividends), how much your genuine expenses are and your IR35 status.

[Soled73]

check out the calculator in the 'free stuff' section...

Hi Mike, I'm new to contracting, so as yet I don't have an idea of expenses etc.

[MikeB]

check out the calculator in the 'free stuff' section...

[Soled73]

Can you give me an indication of the expected take home pay as a contractor. I'm being offered a position at £500 per day.

Is a take home rate of 75% an achievable average with a good accountant?