Contracting / take-home pay

[dan101smith]

Chaps - just tried a search but it's not working. I know this will have been covered though.

I'm potentially going to be contracting for a while.

Not done it before, but have setup a VAT registered LTD company (initially for something else, but never mind!).

I need to get an accountant onboard, but realistically roughly what percentage of the day rate is realistic to have as take-home pay?

[BluePurpleRed]

Ha ha! I have a post that may be suitable for you on my blog :

http://financialraddeveloper.wordpress.com/2010/03...

You *can* get 80% if some managed solutions will let you believe. Don't, do it is my advice. Its a scam and will get busted and then you will have to pay loads as an employee.

Short answer ... 65 - 70% perhaps, depending on your costs. The article covers the other issues and I hope it helps.

[shirt]

it depends. best advice would be to see an accountant who will give you a tax lesson, talk you through ir35 and run some projections. mine is looking to be 88-89% net but then I'm small beer compared to many.

[Eric Mc]

If you can wangle it, the only tax you would need to concern yourself about could be Corporation Tax - which is currently 21% of the company's profits.

However, there are lots of other matters to be taken into consideration before such a simple scenario can be assumed.

[Romanymagic]

OP, I can recommend an excellent IT industry focussed, IR35 specialist Accountant, PM me if you want the contact details.

[BluePurpleRed]

shirt said:

it depends. best advice would be to see an accountant who will give you a tax lesson, talk you through ir35 and run some projections. mine is looking to be 88-89% net but then I'm small beer compared to many.

Wow, I want your accountant!

[Scott330ci]

I take about 81% I believe.

[shirt]

BluePurpleRed said:

shirt said:

it depends. best advice would be to see an accountant who will give you a tax lesson, talk you through ir35 and run some projections. mine is looking to be 88-89% net but then I'm small beer compared to many.

Wow, I want your accountant!

but not my contract! not big money but huge expenses. I have another contract in the offing that will reduce my expenses by a large amount so I will end up paying more tax, bringing me to the 80% mark.