Hi, what is your gross wage before tax and we can tell you exactly what you should be getting in your hand.
Hi, I recently started as IT contractor. I have my own limited company. At the moment my take home pay is 60% of my gross income. Is this normal? What is the average take home pay when you operate as limited company. I know it depends on lot of things like expenses, but I am just looking to hear from other IT contractors their opinions.
I heard from some people they are keeping upto 80% of gross. How this is possible?
I am claiming mobile bill and broadband only. I can not claim for mileage because I am traveling to the same client every day. What else can I claim? Any guidance and info really helpful to me.
Thanks
He's not talking about the gross salary that he's drawing from the company. He's talking about the differential between turnover (hours worked x hourly rate) and the net amount he receives out of the company.
Hi, what is your gross wage before tax and we can tell you exactly what you should be getting in your hand.
Genuine question, if you're on site every day, what do you use the mobile & broadband for...?!
As you've described it you're not really any different than an employee, except that the legal arrangement is different. If you aren't incurring many expenses and you're paying everything else out in salary, then your net pay is what it is, it's a function of your gross pay, the tax rates applicable and your tax credits.
Hi Victory1,
Keeping up to 80% gross seems very high to me and I'd love to know where I am going wrong
Regarding keeping 1,000 in the company, there are accountants on this forum who can give you the specifics but there are limits to how much you can leave in the company before it attracts penalties - it's known as the "surcharge on undistributed professional income".
Firefly.
Thanks for your reply firefly. Are you an IT contractor, if yes what percentage is your take home if you don't mind to share . I will find out about surcharge. Present I don't have much money left in company account as this is only my second month.
Hi victory1,
Yes I an an IT contractor, I'd rather not provide details on my gross / net % except to say that I claim for very little so my net would be pretty close to that of a PAYE employee earning a salary equal to my contracting rate.
I appreciate that I take a very conservative approach and there probably are other things I could be claiming for, but I love my sleep
Firefly.
...... I can not claim for mileage because I am traveling to the same client every day....
Whoa! You must have blisters on your fingers from all the AAM'ing today!(At least one post every hour since 10 this morning, except between 5-6 and 7-8! You'll burn yourself out!!)
Employees/directors cannot claim for tax free reimbursement of expenses of travel to/from their normal place of work.
one for the road as the Cinderella hour approaches!
So is the same client the issue?, as opposed to say an IT contractor who travels on say call outs to different sites.
If this is not allowed, how is that cost recovered, by just billing the travelling hours?
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