How Much In Your Pocket

[BoredBloke]

Having seen the amounts quoted running through a composite company structure, is it possible to match it via a ltd company.

If you have a weekly gross of say £1500 (before VAT), what should you be able to pull out of your company and when?

The reason I ask is that I have been quoted about £1100 - £1200 per week via a composite which I never got close to while using my ltd company.

Cheers

[swamp]

You may save money by using a composite or managed service company, but in the light of this week's Budget (see 5.85) you'll have to give it all back to Hector some day soon (with interest!)

[BoredBloke]

I realise that. The point I was making was that composite companies should be as tax efficient (or less) than a ltd company. I just don't seem to be able to get as much out of my ltd company as I could out of a composite.

So if your company generates £1500 in fees, what would be a typical PAYE monthly amount and quarterly divi payment?

[VectraMan]

Are they making assumptions on expenses? I.e. maximum allowable amount of lunch every day etc. They might also be assuming you don't get into the higher rate tax band, so your dividends are not taxed. If you're billing £1500 per week for most of the year, you obviously will.

[MrsGoof]

I think they seem to quote based upon not coughing up the extra TAX due (from DIVIs) when you fill in your tax return.

[expat]

How much in your pocket

Is that £1200 in your pocket, or are you just pleased to see me?

[Alexander Coe]

Having seen the amounts quoted running through a composite company structure, is it possible to match it via a ltd company.
Cheers

I used to use Giant and was getting about 76% - 80% after deductions with their powerhouse divs scheme but switched to Ltd (using SJD accountants) and am actually slightly better off after going Ltd

HTH

[BoredBloke]

No, They stated that they pay min wage. Then they pay divis and these can be split between me and the wife to avoid the 40% bracket. No claiming of expenses without reciepts etc

[ASB]

Lets say billing 75k p.a. Nil expenses. Salary 4800. NI nil, tax nil.

Profit = 70,200. CT = 13338.

Divi = 56862

P1 = 33231. Higher rate tax = 0
P2 = 28431. ditto

Total yield = 82%

Of course this assumes outside IR35 and S660 and that there is no other income on either party to push them into the higher rate bracket.

[tim123]

The thing is that there's nothing here that Tony can't do for himself.

So why isn't he?

tim