How Much Could I Earn?
Your earning potential is unlimited!! Literally, by spending all of your time focussed on developing new business and nurturing existing clients (because we do all the admin and paperwork for you), you can earn as much as you are motivated to deliver.
You’ll be keeping much more of your billings for yourself, and what’s more with our tax and accounting advice, we’ll help you maximise your income by earning via a self-employed basis rather than on a PAYE employed basis earning commission.
By being self-employed, you can pay less personal tax by paying yourself via a combination of dividends and salary to take full advantage of the tax allowances available which could result in taking home more than 86% extra based on the same level of income.
Obviously commission schemes and targets vary greatly so we’ve highlighted a couple of examples below making the following assumptions:
• 35 year old in 2016/2017 tax year
• Billing £150,000 a year or £12,500 a month
• Basic salary of £25,000 and 20% commission on all billings above a £7,000 a month target (so £66,000 of annual billing qualifies for commission)
• For the manager example, earning 5% of your employee’s billings with the employee billing £150,000 a year, and costing £36,500 in additional costs (basic salary, commission and National Insurance contributions).
As both of these examples demonstrate, you will be seeing much more of your earnings than you currently do by being self-employed! And don’t worry, we’ll tell you how to receive your income in the most tax efficient way.