I've seen this mentioned all over the place, and I'm being really dumb here but I don't really understand how people have built up large warchests.
I'm a Business Analyst, on £400 a day. That's a decent wage compared to other jobs, I've always been between £300 and £400. Talking to other analysts, and PMs, that sort of day rate seems to be the going rate. I've never met a BA or PM on more than 450.
In a month, that works out to be £8,000 plus VAT.
Out of that 8k, there's corporation tax to come out, plus insurances, pension contributions, mobile phone, etc.
As per my accountant, the dividend I can pay myself is £3,667 and salary £719.
That doesn't leave an awful lot out of that 8k.
An option would be to not take as high a dividend but due to loans in the past, my personal outgoings are quite high so I need all the money I can get in my personal account, so I take the maximum my accountant says I can.
I assume most people would take a salary and dividend of similar amounts.
If that's the case, there's probably between 1 and 3k in the business account left over. That would take a while to build up a sizeable warchest, yet I see people on here mention how big theirs is, and "after working for a year, I've got a great warchest again".
What am I missing?
I'm a Business Analyst, on £400 a day. That's a decent wage compared to other jobs, I've always been between £300 and £400. Talking to other analysts, and PMs, that sort of day rate seems to be the going rate. I've never met a BA or PM on more than 450.
In a month, that works out to be £8,000 plus VAT.
Out of that 8k, there's corporation tax to come out, plus insurances, pension contributions, mobile phone, etc.
As per my accountant, the dividend I can pay myself is £3,667 and salary £719.
That doesn't leave an awful lot out of that 8k.
An option would be to not take as high a dividend but due to loans in the past, my personal outgoings are quite high so I need all the money I can get in my personal account, so I take the maximum my accountant says I can.
I assume most people would take a salary and dividend of similar amounts.
If that's the case, there's probably between 1 and 3k in the business account left over. That would take a while to build up a sizeable warchest, yet I see people on here mention how big theirs is, and "after working for a year, I've got a great warchest again".
What am I missing?
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