Gorilla accounting. Are they that good? Gorilla accounting. Are they that good?
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    Default Gorilla accounting. Are they that good?

    I'm with Gorilla Accounting currently. I asked them to calculate for me take home pay and it's only 67% of my salary.
    Is not too low? I was expecting that taxes will be ~20%.

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    Quote Originally Posted by qbait View Post
    I'm with Gorilla Accounting currently. I asked them to calculate for me take home pay and it's only 67% of my salary.
    Is not too low? I was expecting that taxes will be ~20%.
    What do the online calculators say?

    The answer is very individual depending on expenses, pension contributions, salary/dividend split, other employees/shareholders, other taxable income.

    But to be paying only 20% tax you would be earning a very low rate.

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    I've just calculated it here Contractor Calculator - Your Expert Guide to Contracting. For UK Contractors, Freelancers, and Consultants and according to their calculation, I should take home 7000GBP more annually than Gorilla's prediction. Quite disappointing.

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    Quote Originally Posted by qbait View Post
    I'm with Gorilla Accounting currently. I asked them to calculate for me take home pay and it's only 67% of my salary.
    Is not too low? I was expecting that taxes will be ~20%.
    Of your what????
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    This link discusses it in detail..

    https://www.contractoruk.com/forums/...take-home.html

    Rule of thumb I recall reading somewhere on this site a go by is 65-70% for a limited company,
    And this one
    https://www.contractoruk.com/forums/...ercentage.html

    If you're only going to use your tax allowance (i.e. not your wife's) then you're probably looking at around 65% to 68% with a few expenses thrown in. Now that's assuming you pay yourself a reasonable salary of £15k (as opposed to minimum wage) and then take out all income as dividends.
    So you appear to be spot on. It think it's your expectations that are too high, not Gorilla's numbers. The calculators are far too generic to be taking your accountant to task with. It doesn't go in to any kind of expenses, assets and other things that affect the figures. Your nomadic lifestyle might also affect the numbers more than a standard contractor.... But you if you think a quick calculation on the web is better than a personal calculation done by an accountant why don't you ring them up and get them to go through it line by line so you fully understand it before hitting the forums?
    Last edited by northernladuk; 23rd March 2019 at 17:38.
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    So, accountants that promise more than 80% are dodgy?

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    Salary. Right.

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    Quote Originally Posted by qbait View Post
    So, accountants that promise more than 80% are dodgy?
    Is 90% take-home pay achievable via a charity scheme?
    Last edited by northernladuk; 24th March 2019 at 00:29.
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  9. #9

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    Quote Originally Posted by qbait View Post
    So, accountants that promise more than 80% are dodgy?
    Yes.

    Simple, really. If you pay yourself in salary, you'll lose 25% after the first £8.4K to National Insurance and 20% after the first £12.5K to Income Tax. Not hard to see that doesn't leave you 80% take home. If instead you pay yourself in dividends, you'll lose 19% to Corporation Tax and, after the first £14.5K, 7.5% to dividend tax. That doesn't leave you 80% take home. And neither of those calculations take into account expenses, including the accountant's fee.

    You can do a little better by paying a small salary and the rest in dividends. But if your accountant charges a normal fee, you aren't going to get to 80% unless your income is less than £20K, in which case his fee is probably too much for you to be paying.

    Unless the accountant is advising you to join one of these really cool schemes, in which case he'll collect nice fees from you, you'll take home lots of money and not have to pay hardly any tax at all. And then, some day, HMRC will come calling and your accountant will be spending your fees watching the girls on some Mediterranean beach, and you'll be stuck.

    Anyone promising more than 80% should be avoided.

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    Default Accountant

    I went through several accountants, and they were all just as bad as each other. The main problem was that i would always have to deal with a different person because of staff turnover.

    Now i'm with a local accountant who i found by recommendation from the nextdoor app. I have to say he isn't perfect, but he's very knowledgeable, cheaper and always replies to my email within an hour or so. Now i'd never go back to one of the big companies.

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