£38K is the current UK average wage, are business owners working for less??

[aspenarb]

as a small business owner why the hell do you want a salary more than your tax code. You just end up giving it up in tax. Let your accountant earn their fee and sort it.

 

In many cases this is where it all goes wrong, its not the job of a book keeper or an accountant to give tax advice. Proper tax consultants are worth their weight in gold.

 

Bob

[Matthew Storrs]

I suspect I have never earned more than the average wage but consider myself well off for what I do, at my age it's a bit like falling off a log. I have no doubt this industry is not well paid compared with an advancing career in management, judiciary or academia, my younger brother looked like he was going to be a perpetual student, I loaned him money, but he got on the career path and ended up with 100k/annum and retired at 60 on a 30k pension, he has since paid me back in spades.

As you say the average isn't a useful figure but a good statistician should be able to work out the median knowing the shape of the curve ( gamma I suspect)and number of workers but the way I visualise this type of average is that one person earning 100k balances 10 people earning 10k so there are always a lot more people earning less than the average than those earning above.

 

Can't help thinking i'd feel a little hard done by receiving this form of currency in return for a loan:laugh1:

[oldwoodcutter]

Can't help thinking i'd feel a little hard done by receiving this form of currency in return for a loan:laugh1:

 

I've got 3 spades, but will never be that well off to retire.

[Ty Korrigan]

That's seems quite oppressive, how much does a days work for 3 guys cost the customer ?

1200€-1500€ inc vat

£900-£1100 at todays exchange rate.

Ty

[johnanderton]

That's a fairly decent day rate , how much are you paying your top climber per day ?

[Marc]

Husband and wife teams can be quite tax efficient. On £90k profit you end up paying 20% total taxation (compared to 33% if you took two £45k salaries).

 

It's a very small difference!

[Marc]

That's a fairly decent day rate , how much are you paying your top climber per day ?

 

That is our median rate where we are based, sometimes we can pull in more on jobs other times less but over the year we need to earn those kind of figure to be profitable with long term prospects- reinvestment in equipment, cpd, evolving and improving the business.

And even at that it's tight.

 

Also we do not pay any difference in wages/day rate all are on the roughly the same.

[csservices]

In many cases this is where it all goes wrong, its not the job of a book keeper or an accountant to give tax advice. Proper tax consultants are worth their weight in gold.

 

Bob

 

Depends on the size of your business, as a one man band nowadays, having a good accountant is worth its weight in gold, my old accountants screwed me royally and we're well paid for it, only found out when I changed accountants, new man is a lot more on the ball.

[richy_B]

It's a very small difference!

 

If the choice is give the tax man £18k or £27.5k I know which I'd prefer. £9k a year more after tax would make a lot of people's lives easier.

[Marc]

If the choice is give the tax man £18k or £27.5k I know which I'd prefer. £9k a year more after tax would make a lot of people's lives easier.

 

How did you arrive by that figure? I had me concerns one year I might jump a tax bracket, the thing is you only pay the high band on what you earn over.

 

So for example if you earn 41k up to 40k you pay 20% then on the 1k over you pay 33%

 

I rather earn the money and pay tax than not earn it.