80% Take Home

[dk27]

My accountant promised me 80% take home but now when I calculate my actual income it is 60% of what I am gettting so If I get 500 pounds per day my corporation tax is about 20% and tax on my dividend is about 20% so actual take home is 300 pounds perday but accountant is saying it is 80% as your take home is 400 pounds...

Can some one please tell me if he is correct?

[JonSmile]

as corp tax is 21% you will be pushing it to get 80%

there will be deductions for salary (£6k ish)
expenses (£20k ish)
and then depening on the amount of dividends, some extra tax to pay

so finger in air calcs
earn £110k
sal £7k
exp £12k
gross profit £91k
corp tax £19k
dividends £72k
extra tax £10k

take home (72+7)-10=69k
so 69/110 is about 63%

[pzz76077]

My accountant promised me 80% take home but now when I calculate my actual income it is 60% of what I am gettting so If I get 500 pounds per day my corporation tax is about 20% and tax on my dividend is about 20% so actual take home is 300 pounds perday but accountant is saying it is 80% as your take home is 400 pounds...

Can some one please tell me if he is correct?

Will your accountant sign a contract to guarantee that you will get 80%??
No??
You wont be getting 80% then.

Better find some expenses to bump up your take home.

PZZ

[moorfield]

Sounds like the usual sales guff that many number bods and umbrella shops try to pedal.

My net income last year was around 72%
(calculated as: invoices - ltdco running costs - commuting costs - paye+ni - corp tax - extra self assessment)

But... some of that money has been held in ltdco (to avoid higher rate tax on extraction) and some put into a pension, but I count it as net income because it is still mine and not Hector's.

[d000hg]

£20k on expenses? Your legitimate business expenses are more than many people's gross salaries?

[Billy Pilgrim]

Sounds like the usual sales guff that many number bods and umbrella shops try to pedal.

My net income last year was around 72%
(calculated as: invoices - ltdco running costs - commuting costs - paye+ni - corp tax - extra self assessment)

But... some of that money has been held in ltdco (to avoid higher rate tax on extraction) and some put into a pension, but I count it as net income because it is still mine and not Hector's.

The part you have left in the company is not yours

Nor is all of your pension

[TheFaQQer]

My accountant promised me 80% take home

Your accountant lied. Sack him and find a decent one.

[TheFaQQer]

£20k on expenses? Your legitimate business expenses are more than many people's gross salaries?

Mine are.

A year of flights and hotels soon racks up.

[Billy Pilgrim]

Mine are.

A year of flights and hotels soon racks up.

Mine are at least double -- costing me £500/600 per week working down London way -- soon adds up to a lot of money !!!

[Tarquin Farquhar]

My accountant promised me 80% take home but now when I calculate my actual income it is 60% of what I am gettting so If I get 500 pounds per day my corporation tax is about 20% and tax on my dividend is about 20% so actual take home is 300 pounds perday but accountant is saying it is 80% as your take home is 400 pounds...

Can some one please tell me if he is correct?

You are taking home about 80% of company net profits. You are indeed only paying about 20% of your gross income in tax. But of course the company is not free to pay you all of its income as dividend, not until the company has paid tax on its profit.

Did he promise you that you would take home 80% of billing? If so, he is a liar. If he merely said you would take home 80% and left you to assume that he meant 80% of billing, then he is not a liar but rather some different sort of slimy dishonest reptile. Apologies to all decent reptiles.