Question
I’ve never bothered adding the other half as a shareholder / employee of my ltd as she earns 35k and always thought she’d be too close to the higher rate tax threshold anyway so wasn’t much point
But in a position now where we need to fund a house renovation so I’m budget forecasting and trying to extract as much from the Ltd profits as possible whilst avoiding the higher rate tax if possible
I’m thinking as a shareholder I could award here say 6k share of the profits [think I’ve got that right]
Question is does the calculation for whether you’ve hit the higher rate tax threshold take into account the gross salary or the gross taxable salary?
She pays into pension, share schemes and child care stuff too, so for arguments sake her taxable salary could be down to £32k, so theoretically I could be awarding £10k of Ltd profits?
I would ask the accountant but he’s on holiday for two weeks )
I’ve never bothered adding the other half as a shareholder / employee of my ltd as she earns 35k and always thought she’d be too close to the higher rate tax threshold anyway so wasn’t much point
But in a position now where we need to fund a house renovation so I’m budget forecasting and trying to extract as much from the Ltd profits as possible whilst avoiding the higher rate tax if possible
I’m thinking as a shareholder I could award here say 6k share of the profits [think I’ve got that right]
Question is does the calculation for whether you’ve hit the higher rate tax threshold take into account the gross salary or the gross taxable salary?
She pays into pension, share schemes and child care stuff too, so for arguments sake her taxable salary could be down to £32k, so theoretically I could be awarding £10k of Ltd profits?
I would ask the accountant but he’s on holiday for two weeks )
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