Typical Financial Appraisal of our
Arrangement on £33K5 Annual income
33500.00
01005.00 3% commission
32495.00 invoiced income
03249.00 our 10% fee
29246.00
12998.00 40% Wage
16248.00
04062.00 12.5% salary sacrifice
12186.00
06499.00 20% expenses
05687.00
05687.00 17.5% retention
00000.00
Tax Payable on 40% Wage
12998.00
05225.00 Tax Allowance
07773.00
Tax borne
Nil @ 10% Starting Rate
£7773 @ 10% Dividend Rate £777
TOTAL LIABILITY £777
The 40% Wage is declared as
£5225 Basic Salary plus £7773 Dividends
National Insurance is only paid on Basic Salary
which at £5225 is 0% but you are credited with
having made a payment thereby giving you a
Free Pension credit worth £2422.00 per year.
Money in this single Individual’s Pocket
12998.00 Wages
06499.00 Expenses Tax Free
19497.00
04062.00 Salary Sacrifice
23559.00
+5687.00 End of Contract
---------------------Bonus Tax Free
29246.00
-0777.00 2.4% Tax
28469.00
with a pension credit worth £2422.00 per Annum therefore:
OUR ARRANGEMENT IS WORTH TO THE SINGLE INDIVIDUAL
28469.00
+2422.00 Pension credit
30891.00
which is 95% of the invoiced income bearing in mind you have also paid out
03249.00 our 10% fee
00777.00 2.4% Tax
34917.00 Total available
107.45% of invoiced income
Because our Arrangement nullifies Section 660A as well as IR35 the Individual’s Spouse can be employed at a Basic Salary of £5225.00 giving them ALSO a pension credit worth £2422.0 as well as saving further TAX worth £522.00
Individual with non working Spouse
29246.00
In paying the Spouse £5225.00 you will SAVE £522 Less Tax i.e.£777.00 minus £522.00
=£255.00 Tax Payable
Therefore
Money in Individual’s pocket with non working Spouse
=24021.00
+05225.00 Spouse’s wage
+02422.00 Pension Credit
031668.00
-00255.00 0.78% Tax
031413.00
with a free pension credit for non working Spouse worth £2422.00 per Annum.
therefore
OUR ARRANGEMENT IS WORTH TO THE INDIVIDUAL WITH NON WORKING SPOUSE
26188.00
+5225.00 Spouse’s wage
+2422.00 Pension Credit
+0522.00 Tax saving on wage
34357.00
which is 105.7% of the invoiced income bearing in mind you have also paid out
3249.00 our 10% fee
0255.00 0.78% Tax
38124.00 Total available
117.3% of invoiced income