Has the original question been answered? If not, I'll have a go. Let's assume you have £100K of income and £10K of expenses (before salaries) and there are 3 options as to the vehicle through which you may operate. The first is as a sole-trader, the second is as a limited company and the third is through a tax scheme provider.
If you trade as a sole-trader, I reckon you should take home £71,941 after tax in year one. I have assumed that you are an IT contractor in your first year of trade on the VAT flat rate scheme. This assumes that the £10K expenses end up in your pocket (ie they are expenses you would have incurred irrespective of whether or not you were self-employed such as travel, phone, use of home etc). It disregards any accountancy fees.
Through a limited company, your take-home will depend substantially on your personal circumstances. In particular, whether or not you have such a convenient thing as a spouse or partner who is a non-higher rate taxpayer and whether or not you need all your post-tax income on an arising basis.
Assuming firstly that you are single and need every penny (ie worst case scenario). In this case, I reckon you will take home £77,074 per annum.
Assuming secondly that you are married to a non-earner and can justify paying her £7,068 in salary and are also happy to make her a 50% shareholder so that she can receive half of the dividends. In this case, you will take home £87,867 per annum.
Finally, assuming you are single but can live on £38,934 net plus expenses per annum, you will then eventually take home £84,681 net (assuming the accumulated reserves are eventually taken as a capital sum, subject to 10% CGT on the dissolution of the company).
Again, for each of these examples, I have disregarded accountancy fees (so that you can see the benefit and determine whether or not it is worth paying those fees. Bear in mind that you will get tax relief on the accountancy fees so if the difference were £1,500 and you paid £1,500 in fees, you would still be (albeit marginally) better off going limited company. I have also assumed that IR35 is not an issue.
Finally, if you go through a tax scheme provider, presumably you get £100K minus their fees which I imagine are in the range 10-15% so I guess you will end up with £85-90K. Whether or not this is worthwhile will depend in a number of factors but primarily, which of the alternative positions you are in, whether or not you feel IR35 is an issue and your attitude towards risk. You may also have an ethical standpoint.
Hope this helps.
PUMA
If you trade as a sole-trader, I reckon you should take home £71,941 after tax in year one. I have assumed that you are an IT contractor in your first year of trade on the VAT flat rate scheme. This assumes that the £10K expenses end up in your pocket (ie they are expenses you would have incurred irrespective of whether or not you were self-employed such as travel, phone, use of home etc). It disregards any accountancy fees.
Through a limited company, your take-home will depend substantially on your personal circumstances. In particular, whether or not you have such a convenient thing as a spouse or partner who is a non-higher rate taxpayer and whether or not you need all your post-tax income on an arising basis.
Assuming firstly that you are single and need every penny (ie worst case scenario). In this case, I reckon you will take home £77,074 per annum.
Assuming secondly that you are married to a non-earner and can justify paying her £7,068 in salary and are also happy to make her a 50% shareholder so that she can receive half of the dividends. In this case, you will take home £87,867 per annum.
Finally, assuming you are single but can live on £38,934 net plus expenses per annum, you will then eventually take home £84,681 net (assuming the accumulated reserves are eventually taken as a capital sum, subject to 10% CGT on the dissolution of the company).
Again, for each of these examples, I have disregarded accountancy fees (so that you can see the benefit and determine whether or not it is worth paying those fees. Bear in mind that you will get tax relief on the accountancy fees so if the difference were £1,500 and you paid £1,500 in fees, you would still be (albeit marginally) better off going limited company. I have also assumed that IR35 is not an issue.
Finally, if you go through a tax scheme provider, presumably you get £100K minus their fees which I imagine are in the range 10-15% so I guess you will end up with £85-90K. Whether or not this is worthwhile will depend in a number of factors but primarily, which of the alternative positions you are in, whether or not you feel IR35 is an issue and your attitude towards risk. You may also have an ethical standpoint.
Hope this helps.
PUMA
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