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Dividend and directors loan

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    #11
    Originally posted by northernladuk View Post
    Interesting... And do we assume if the OP has 8k showing profit he is only taking 7k as that will hit the tax limit rather than the full 8k or is there some reason to keep a little bit of profit to cover small issues when it comes to year end accounting?
    I don't know what the OP's reasons are, though capping your income at the higher rate threshold is common tax planning of course.

    I would always advise keeping some profit in the company as you do not know what is around the corner - for example an unexpected period without a contract. From reading your posts in the past I think you are of the same opinion as me on that one!

    Martin

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