..be investigated...as it is this type of company that is trying to beat IR35.
As many (from research on here) opt for minimum way or maybe the optimum £10,000 (for maximum tax savings) this could be a backward approach due to the risk of IR35 costs.
An accountant mentioned £12-13k reduces your noticability and my friend has his accountant opt for £16-20k salary as the tax on the extra isn't "major" (he's been on £450 a day for a decade so he can afford it).
My question is:
Is £12,000 optimum in terms of low tax (20% on the £2,000 [above the £10,000 tax free threshold])
and low risk from IR35 (my contract is via an agency who said I wouldn't be at risk going via them).
Quarterly dividends apparently draw the least attention from the tax man too.
My plan was going to be:
£12,000 Annual Salary
~£7,905 Expenses (extra rent @£5pd, food @£10pd, 10,000 miles) Assuming 227 working days a year
Of reminder of my rate, *.8 to leave corporation tax and then pay the remainder of what is left quarterly to me (however I've heard you should leave say 30% in the business bank account so was going to do this?)
Thanks for any help on any points.
As many (from research on here) opt for minimum way or maybe the optimum £10,000 (for maximum tax savings) this could be a backward approach due to the risk of IR35 costs.
An accountant mentioned £12-13k reduces your noticability and my friend has his accountant opt for £16-20k salary as the tax on the extra isn't "major" (he's been on £450 a day for a decade so he can afford it).
My question is:
Is £12,000 optimum in terms of low tax (20% on the £2,000 [above the £10,000 tax free threshold])
and low risk from IR35 (my contract is via an agency who said I wouldn't be at risk going via them).
Quarterly dividends apparently draw the least attention from the tax man too.
My plan was going to be:
£12,000 Annual Salary
~£7,905 Expenses (extra rent @£5pd, food @£10pd, 10,000 miles) Assuming 227 working days a year
Of reminder of my rate, *.8 to leave corporation tax and then pay the remainder of what is left quarterly to me (however I've heard you should leave say 30% in the business bank account so was going to do this?)
Thanks for any help on any points.
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