Weekly Invoice total | £1,500.00 | ||
Gross Salary Payment (5 days) | £366.25 | ||
Income Tax and NI (assuming a 1250L tax code) | £76.80 | ||
Net Salary Payment | £289.45 | ||
Paid to Network | £1,133.75 | ||
Retained for Management Co Costs & Corporation Tax | £202.51 | ||
Dividend (Based on 12 months working) | £41.66 | ||
Monthly Dividend Tax Liability | £0.00 | ||
Available Profit for Distribution | £889.58 | ||
CGT Liability (Capital Payment) | £63.96 | ||
Net | £825.62 | ||
Total Deductions | £343.27 | ||
Take Home | £1,156.73 |
You will become an employee of one of our Umbrella Companies. As an employee, IR35 just isn't applicable so this is something you needn't worry about.
The Umbrella Company will pay you a salary and pay all Tax and NIC's due on your behalf.
In addition to this you will become a member of the Consultancy Network you will also be eligible to receive Profit Share. There are a number of ways to receive Profit Share, all of which are fully disclosed to HMRC and are taxable.
On an invoice of £1,500.00 you would retain £1,156.73 (77.12%) in total assuming a tax code of 1250L and no other income.
Been quoted higher than 80%? To get above 80% you would need to be using a Tax Avoidance Scheme which is confirmed by HMRC
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