• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Reply to: £400K tax bill

Collapse

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "£400K tax bill"

Collapse

  • TheFaQQer
    replied
    Originally posted by PurpleGorilla View Post
    How many days do you bill a year?
    It varies from year to year. I always aim to work no more than 9 months of the year - some years I manage to do that, some years I work more than that because I can.

    I'd guess at between 160 and 220 feels about right.

    Leave a comment:


  • PurpleGorilla
    replied
    Originally posted by TheFaQQer View Post
    Salary £8k
    Pension £32k
    Gross Profit £10k
    Corporation tax £2k
    Net profit £2k

    Pay our £5k in dividends and you leave £3k in the company
    How many days do you bill a year?

    Leave a comment:


  • vetran
    replied
    Originally posted by NotAllThere View Post
    4x? INKSPE.
    yep they pay their cleaners £20 an hour !

    Leave a comment:


  • Waldorf
    replied
    Originally posted by LondonManc View Post
    Profit? 2k expenses and you don't pay any tax at all. An accountant, insurance, website, etc should get you there.
    You would need £10k in expenses to get the profit to zero and hence paying no corporation tax. An unlikely scenario though, it’s contractors taking the p1ss that have caused the problems we have today.

    Leave a comment:


  • SeededLoaf
    replied
    Originally posted by LondonManc View Post
    Profit? 2k expenses and you don't pay any tax at all. An accountant, insurance, website, etc should get you there.
    Also bring your kids up free using tax credits because you don't 'earn' anything and pension doesn't count

    Leave a comment:


  • LondonManc
    replied
    Originally posted by TheFaQQer View Post
    Salary £8k
    Pension £32k
    Gross Profit £10k
    Corporation tax £2k
    Net profit £2k

    Pay our £5k in dividends and you leave £3k in the company
    Profit? 2k expenses and you don't pay any tax at all. An accountant, insurance, website, etc should get you there.

    Leave a comment:


  • pjclarke
    replied
    Originally posted by TheFaQQer View Post
    Salary £8k
    Pension £32k
    Gross Profit £10k
    Corporation tax £2k
    Net profit £2k

    Pay our £5k in dividends and you leave £3k in the company
    £1,100 a month to live on? Have you tasted Lidl baked beans?

    Leave a comment:


  • TheFaQQer
    replied
    Originally posted by pjclarke View Post
    Well, that's heartening news. How does one go about this?
    Salary £8k
    Pension £32k
    Gross Profit £10k
    Corporation tax £2k
    Net profit £2k

    Pay our £5k in dividends and you leave £3k in the company

    Leave a comment:


  • DimPrawn
    replied
    An individual earning £50,000-a-year through a limited company can pay just £2,000
    Originally posted by pjclarke View Post
    Well, that's heartening news. How does one go about this?
    Ask your accountant. You could ask mine, but he's still in prison.

    Leave a comment:


  • pjclarke
    replied
    An individual earning £50,000-a-year through a limited company can pay just £2,000
    Well, that's heartening news. How does one go about this?

    Leave a comment:


  • sal
    replied
    Originally posted by d000hg View Post
    If your 'employer' tells you it is how they advise you work, it's the norm in your industry, and your accountant advises it's legit...

    Ultimately the responsibility is your own but "you don't know what you don't know" to ask sometimes.
    Nothing wrong with the accountant advise - it IS LEGIT to work for someone using a ltd. even if under DC, not paying the appropriate amount of personal taxes is a different matter.

    Leave a comment:


  • NotAllThere
    replied
    Originally posted by DimPrawn View Post
    ...

    Utter rubbish! double rate? More like quadruple...
    4x? INKSPE.

    Leave a comment:


  • NorthWestPerm2Contr
    replied
    Originally posted by d000hg View Post
    If your 'employer' tells you it is how they advise you work, it's the norm in your industry, and your accountant advises it's legit...

    Ultimately the responsibility is your own but "you don't know what you don't know" to ask sometimes.
    Didn't Qdos insurance sort her out?

    Leave a comment:


  • d000hg
    replied
    If your 'employer' tells you it is how they advise you work, it's the norm in your industry, and your accountant advises it's legit...

    Ultimately the responsibility is your own but "you don't know what you don't know" to ask sometimes.

    Leave a comment:


  • quackhandle
    replied
    I saw this, apparently dear old Auntie Beeb "encouraged" her to setup a limited company, so some culpability there.

    However reading the comments from Ms Ackroyd, she believed she was an independent freelancer, but she hadn't a scooby about IR35 and SDC, etc.

    qh

    Leave a comment:

Working...
X