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over the higher rate on divis

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    over the higher rate on divis

    So how many of you guys go over the higher rate and pay the extra tax under SA, or are you all obsessed with staying under and building reserves.

    My turnover will be £130k or so, and I want a new car....to fit in the new baby as well as the existing sprogs...... so I am planning to go about £15k over to get the £10k or so for the car and pay the extra tax.

    Do I have to resign from the contractors guild and walk away in shame for not being parsimonious??

    #2
    Have you compared the cost of a loan for a year vs. the tax you pay in going over the limit? You might find it's cheaper not to.

    I stuck to the limit for my first year, and probably will for the second, but then I didn't and won't have as much extra as you. The taper relief thing might not last anyhow.
    Will work inside IR35. Or for food.

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      #3
      Take what you need to live on - follow Mr Pickwick's advice - income £20 expenses £19 11s 6d = happiness, income £20 expenses £20 0s 6d = misery. If you need to pay higher rate tax, then so be it (even if it does seem galling). When I was a permie, one of my ambitions was to become a higher rate tax-payer!

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        #4
        Originally posted by mjshrimpton
        So how many of you guys go over the higher rate and pay the extra tax under SA, or are you all obsessed with staying under and building reserves.

        My turnover will be £130k or so, and I want a new car....to fit in the new baby as well as the existing sprogs...... so I am planning to go about £15k over to get the £10k or so for the car and pay the extra tax.

        Do I have to resign from the contractors guild and walk away in shame for not being parsimonious??
        I've always gone into higher rate to enjoy the lifestyle. Otherwise money would just sit there ...

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          #5
          Originally posted by BA to the Stars
          Take what you need to live on - follow Mr Pickwick's advice - income £20 expenses £19 11s 6d = happiness, income £20 expenses £20 0s 6d = misery. If you need to pay higher rate tax, then so be it (even if it does seem galling). When I was a permie, one of my ambitions was to become a higher rate tax-payer!
          Micawber, David Copperfield. So 12 years at public school wasn't a complete waste after all.

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            #6
            Thanks ASB - I knew it was Dickens. That's what a bog standard comprehensive school education does for you!

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              #7
              Originally posted by ASB
              So 12 years at public school wasn't a complete waste after all.
              Christ. 12 years. I would have topped myself if I had stayed at mine for that long. Just like the headmaster who shot himself in the bell tower after being accused of being a pedalo. Never had that on Grange Hill.

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                #8
                What the head was a pedalo. Did he know Freddie Flintoff

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                  #9
                  Originally posted by BA to the Stars
                  What the head was a pedalo. Did he know Freddie Flintoff
                  Freddie Flintoff was riding a headmaster in the Carribean? That never hit the news.

                  On topic, it's my 1st year and I plan to stay under the higher rate bracket. The shares are strucutred in such a way that jusr happens to take Mrs. OG up to the same level.

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                    #10
                    Originally posted by Old Greg
                    Freddie Flintoff was riding a headmaster in the Carribean? That never hit the news.

                    On topic, it's my 1st year and I plan to stay under the higher rate bracket. The shares are strucutred in such a way that jusr happens to take Mrs. OG up to the same level.
                    The old Arctic Systems gamble.... good lad
                    "Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "


                    Thomas Jefferson

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