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Confused

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    Confused

    Just sorting out my pension, critical illness, life insurance and medical health insurance. Accoutant has said best to do it as an individual the FIA has said put it through the company.



    Surely it makes more sense to put it through the company.

    #2
    did they not give reasons for their conclusions?

    Comment


      #3
      Depends on your tax situation. If you are in the top rate tax band then it's better to put it through the co. If not then pay for it yourself.
      "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

      Comment


        #4
        No No No!

        NO NO NO NO!

        Pension through the company is most tax efficient method for you.

        The insurances should be paid out of your own pocket. Reason being if it is done through the company then you do not pay tax on the insurance so it looks like its cheaper. Basically its tax deductible at your basic rate (assuming minimum wage and dividends.)

        But if you do make a claim you will need to pay basic tax on any monies received so 22% of your life, CIC or IP claim is a hefty amount.
        "Wait, I still function!"

        Comment


          #5
          I'm paying myself a salary of 10.5K pa. Not taking any dividends just using savings at the moment. Have been doing this since Co. formed in March.
          Last edited by RightLaugh; 25 October 2007, 10:30.

          Comment


            #6
            Originally posted by RightLaugh View Post
            I'm paying myself a salary of 10.5K pa. Not taking any dividends just using savings at the moment. Have been doing this since Co. formed in March.
            Why?....
            http://www.bluejumper.com

            Comment


              #7
              Originally posted by Fran View Post
              Why?....

              because I was advised to take it all out after 2 yrs using taper relief.
              Although I thought it would be best to take a 10K salary + 25-28K dividends and leave the rest.
              Was also told by accountant not to pay my wife a salary even though she's not working. FIA has advised me to pay her.
              Last edited by RightLaugh; 25 October 2007, 13:03.

              Comment


                #8
                Originally posted by RightLaugh View Post
                Just sorting out my pension, critical illness, life insurance and medical health insurance. Accoutant has said best to do it as an individual the FIA has said put it through the company.



                Surely it makes more sense to put it through the company.
                Definitely - get the pension premiums paid from the company account. The IFA is correct.

                Comment


                  #9
                  Originally posted by LordF View Post
                  Definitely - get the pension premiums paid from the company account. The IFA is correct.
                  Pensions yes, insurances no
                  "Wait, I still function!"

                  Comment


                    #10
                    Originally posted by RightLaugh View Post
                    because I was advised to take it all out after 2 yrs using taper relief.
                    Although I thought it would be best to take a 10K salary + 25-28K dividends and leave the rest.
                    Was also told by accountant not to pay my wife a salary even though she's not working. FIA has advised me to pay her.
                    What is taper relief (not be funny, just new to this).

                    Also I pay my wife, but I've been told that if I ever get investigated I could get into trouble for tax evasion, unless she actually does something in the company? Any one else heard this?
                    http://www.bluejumper.com

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