Any point in contracting after April 2016?

[Intel]

You missed corporation tax off those examples...

Fixed

[pr1]

while you're at it, 280 billable days/year is more than 5 days/week (@52 weeks per year)

[Intel]

while you're at it, 280 billable days/year is more than 5 days/week (@52 weeks per year)

FFS....I really really need to check my cr*p before posting it

I'll fix it to 220 days @ 500 in a bit. Want to keep it in the higher tax rate for the most realistic figures. Not that the figures I've done so far have been realistic.......

[pr1]

it doesn't matter what you do to the numbers, the result is always going to show the difference to be 40% of the expenses (assuming you normally take up to higher rate tax limit) because you're losing the relief from 20% corp tax then 25% higher rate tax (0.8*0.75 = 0.6)

[WTFH]

To answer the original question:


Nasal Sex.

[eek]

FFS....I really really need to check my cr*p before posting it

I'll fix it to 220 days @ 500 in a bit. Want to keep it in the higher tax rate for the most realistic figures. Not that the figures I've done so far have been realistic.......

I will wait for that before extending it..

The important scenario is that many people only go up to the 40% barrier £42385 leaving the rest in the company's coffers.

Now you have to take those expenses out after tax has been paid.

Firstly that £15000 now needs to came from your taxed dividend payments at the higher rate so you need to extract £20000 from the company.

So suddenly your income isn't £42385 but nearer £62385.

That takes you above the child benefit cut off so suddenly you may need another £2000 to cover that loss..

So if in 2015-16 you extract £42385 from the company.
For the exact same standard of living in 2016-17 you need to extract £64385..

[diseasex]

I will wait for that before extending it..

The important scenario is that many people only go up to the 40% barrier £42385 leaving the rest in the company's coffers.

Now you have to take those expenses out after tax has been paid.

Firstly that £15000 now needs to came from your taxed dividend payments at the higher rate so you need to extract £20000 from the company.

So suddenly your income isn't £42385 but nearer £62385.

That takes you above the child benefit cut off so suddenly you may need another £2000 to cover that loss..

So if in 2015-16 you extract £42385 from the company.
For the exact same standard of living in 2016-17 you need to extract £64385..

That's all based on 1500 T&S pm , I mean realistically who spends that much ? mine is like 200-300 when im traveling..

[eek]

That's all based on 1500 T&S pm , I mean realistically who spends that much ? mine is like 200-300 when im traveling..

nope its £1250 a month or so.

Given that my train ticket is £196 a weekend (second class) if I don't prebook and often that is cheaper than prebooked tickets its not difficult to hit £1000 a month on travel alone.

I did that this month before the tube strike. That's added another £200 just for single nights in hotels..

[Intel]

I will wait for that before extending it..

The important scenario is that many people only go up to the 40% barrier £42385 leaving the rest in the company's coffers.

Now you have to take those expenses out after tax has been paid.

Firstly that £15000 now needs to came from your taxed dividend payments at the higher rate so you need to extract £20000 from the company.

So suddenly your income isn't £42385 but nearer £62385.

That takes you above the child benefit cut off so suddenly you may need another £2000 to cover that loss..

So if in 2015-16 you extract £42385 from the company.
For the exact same standard of living in 2016-17 you need to extract £64385..

Good shout, like all things in life it depends on your personal circumstances. I certainly didn't take into account kids as I'm young, free and single....well, single anyway....

I did prefix the figures as simplified, maybe I should have emphasised how simplified...


Bashed the figures a bit more. Hopefully fixed (for my scenario) now.

[The Spartan]

That's all based on 1500 T&S pm , I mean realistically who spends that much ? mine is like 200-300 when im traveling..

Staying in London isn't cheap