Reply to: Average take home as a percentage

[DS23]

take home being salary and dividend as a percentage of gross revenue:

over the last half dozen years comes to 56.7%

the lowest was 26% and the highest 175%

my estimate for the next company year is 56.3%

in the real world the calculators are fairly pointless. either get a ltd co and manage it as you see fit or pay a firm to pay you a wage.

[bulletprooffool]

Thanks again for the help - I'm a little more on top of it now - been battling to get hold of some of the accountants (returns time) but all good.

[scooterscot]

To Mr Taxman, this is humour and is not true...

It's true, Lord Flashheart offshore TttrrrtuuuuuuuUUUuuursts make the HMRC woman turn a blind-eye , woof woof

[chef]

My take home is about 117.5% - it's great.

took me a short while to work that one out but then

[ratewhore]

My take home is about 117.5% - it's great.

Sucker!! I get 135% offshore...

To Mr Taxman, this is humour and is not true...

[scooterscot]

My take home is about 117.5% - it's great.

[chef]

all I want is a simple quick breakdown!!!

a simple breakdown is not possible as has been previously stated, it's down to the individual, their circumtances and the way they choose to run their company.

if you want a list of expensible items then I would advise you get yourself an accountant and ask them. Similar to the %age take home question, different accountants will advise differently depending on how much of a grey area you are willing to go into and if you are willing to take the risk of arguing your reasoning with HMRC if you are ever investigated and also willing to pay the fines they will impose if you are proven to be incorrect in your views. The simple answer is ANYTHING that is 100% a business related expense is a valid expense, if your unsure if it is exclusively a business related expense then that is the grey area I refer to.

[VectraMan]

if you have nothing positive to say, don;t say anything!

don't

[RichardCranium]

To the fools who had something to say about me having run a search

if you have nothing positive to say, don't say anything!

Not as bullet prof as you thought eh?

[NeverBeenNorthOfTheM25]

Welcome to the board. Please continue in this vein, this will make you really popular with people who have been here for years. If I were you I should especially try to attract the attention on someone called "Malvolio", he more than anyone else is fond of repeating the same answers to the same questions.

Ouch! I wouldnt want to cross you when youre in a bad mood. LOL.

[Tarquin Farquhar]

To the fools who had something to say about me having run a search - look at the link you supplied, the thread does not supply the answer to my original question . . ie . . all I want is a simple quick breakdown!!

On every forum there are always some people who are happy to help . .and some that are just negative - if you have nothing positive to say, don;t say anything!

Welcome to the board. Please continue in this vein, this will make you really popular with people who have been here for years. If I were you I should especially try to attract the attention on someone called "Malvolio", he more than anyone else is fond of repeating the same answers to the same questions.

[bulletprooffool]

I use a similar measure but split my expenses 3 ways:
1 expenses I have to incur running my ltdco (number bods, insurance etc.)
2 expenses I have to incur getting to/from clientco (trains etc.)
3 everything else that I put through the books "beacuse I can" (broadband, mobile, home office, software licenses, laptop etc.)

I see expenses 3 as part of my "take home" - it's just a convenient way of extracting from ltdco to reduce corp tax but paying off those bills. Expenses 1+2 I have to incur to work.

So my own measure of "take home" is
billing - (expenses 1+2) - (ni + paye) - (corp tax) - (additional self assessment)

This leaves me a "take home" figure which is then usually spread across
1 net salary + expenses 3
2 divi payments
3 retained earnings in ltdco
4 pension

Some may disagree that 3+4 should be seen as "take home" but I regard it as such because I still "control" it, some of it just happens to be in an inconvenient location.

Looking at this calculation for my 2007/08 financial year I see

"take home" / billing = 73%

ie. 27% of billing was lost to tax and necessary expenses incurred operating my ltdco and working.

Thanks for a useful response - Really appreciate it.
Having spoken to a couple of agencies . . they've not really made it totally clear what I can and what I can't expense.

To the fools who had something to say about me having run a search - look at the link you supplied, the thread does not supply the answer to my original question . . ie . . all I want is a simple quick breakdown!!

On every forum there are always some people who are happy to help . .and some that are just negative - if you have nothing positive to say, don;t say anything!

[Tarquin Farquhar]

3 everything else that I put through the books "beacuse I can" (broadband, mobile, home office, software licenses, laptop etc.)

I see expenses 3 as part of my "take home" - it's just a convenient way of extracting from ltdco to reduce corp tax but paying off those bills.

I agree with you that No. 3 is part of "take home", I just don't agree that it's "expenses"

[moorfield]

And of course the more your expenses, the less you take home, since obviously take-home = billing - expenses - tax etc.

I use a similar measure but split my expenses 3 ways:
1 expenses I have to incur running my ltdco (number bods, insurance etc.)
2 expenses I have to incur getting to/from clientco (trains etc.)
3 everything else that I put through the books "beacuse I can" (broadband, mobile, home office, software licenses, laptop etc.)

I see expenses 3 as part of my "take home" - it's just a convenient way of extracting from ltdco to reduce corp tax but paying off those bills. Expenses 1+2 I have to incur to work.

So my own measure of "take home" is
billing - (expenses 1+2) - (ni + paye) - (corp tax) - (additional self assessment)

This leaves me a "take home" figure which is then usually spread across
1 net salary + expenses 3
2 divi payments
3 retained earnings in ltdco
4 pension

Some may disagree that 3+4 should be seen as "take home" but I regard it as such because I still "control" it, some of it just happens to be in an inconvenient location.

Looking at this calculation for my 2007/08 financial year I see

"take home" / billing = 73%

ie. 27% of billing was lost to tax and necessary expenses incurred operating my ltdco and working.

[Tarquin Farquhar]

As a general rule you can probably expect around 2/3rds take home pay for say a decent per day contract with average expenses (ie youre not travelling up and down the country to get to this job).

And of course the more your expenses, the less you take home, since obviously take-home = billing - expenses - tax etc.