Use MyBookkeepingManager to See Your Retention Rate

A feature specifically aimed at IT contractors, the MyBookkeepingManager bookkeeping software calcuates how much of what you earn actually ends up in your pocket!

Calculating retention rate (take home pay) can be useful in determining how tax efficient your business operations are. The calculation is made by looking at what the turnover of your company is, and taking away from this value items such as income tax, corporation tax, and national insurance contributions. This then gives you a percentage value, which indicates how much of what your company earns is paid to you.

Note that if you are a higher rate tax payer, you will probably owe additional tax on the dividends you draw from your company.

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