Reply to: £400K tax bill

[TheFaQQer]

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.

[PurpleGorilla]

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?

[vetran]

4x? INKSPE.

yep they pay their cleaners £20 an hour !

[Waldorf]

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.

[SeededLoaf]

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

[LondonManc]

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.

[pjclarke]

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?

[TheFaQQer]

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

[DimPrawn]

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?

Ask your accountant. You could ask mine, but he's still in prison.

[pjclarke]

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?

[sal]

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.

[NotAllThere]

...

Utter rubbish! double rate? More like quadruple...

4x? INKSPE.

[NorthWestPerm2Contr]

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?

[d000hg]

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.

[quackhandle]

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