85% Returns Using Limited Companies Option
You can still get 85% returns using Limited Companies. You don’t have to go for the more prosaic offshore model. That’s if you use your limited company more tax efficiently.
Most Accountants will save contractors as much as they can, based on the information that contractors give them.
They look at your outgoings, and the expenses that you have incurred and base your accounts on that. They may add a few extra expenses too that you hadn’t thought of, like stationery, to help you out.
However, this is mostly reactive.
Making You Limited Company More Tax Efficient
They don’t look, proactively, for ways that you can make your limited company more tax efficient.
If you’ve got a decent Accountant they might be able to allow you to keep 75% of all the money you earn. Maybe, even, they’ll do it so that you can keep a little more.
You can, however, get 85% returns using limited companies.
If you want to keep 85%, or more, of your hard earned cash you would be better to choose a limited company solutions provider who is more proactive when trying to save contractors money.
85% Returns on Contractors Income
The difference between 75% or a little more and 85% or a little more, may not seem that much.
However, for the average IT contractor earning £420 a day, that’s the equivalent of ten grand a year.
That’s all free money too as none of it is allocated to any expenses you have.
Over ten years that would be a hundred grand difference. That could be even more if you have invested the extra money wisely.
Compare the Umbrella Limited Company Providers
One company who are able to do this well are Compare the Umbrella, who have both an umbrella company product and a tax efficient limited company product.
They have teams of Accountants and Tax experts who are up to date on all the latest laws and regulations and what contractors can and can’t legally claim. There’s no point in paying extra tax if you don’t need to.
For more information just fill in the boxes below and they will be in touch with the details.
For further info see Compare the Umbrella