Afternoon,
Im wondering if anyone can help?
Me and my wife are both contractors, are 50/50 shareholders and both directors of one limited company...
My wife is expecting in March 2010 and currently we are both paid a low gross annual salaries of under £10k.
We have also taken enough dividends to find ourselves both in the higher rate of tax for this tax year.
We are currently considering paying my wife a bonus of £20k+ in the months of Oct / Nov 09 (£10k+ a month) to raise what can be claimed through SMP...
Being able to claim back 104.5% would help us financially, instead of paying the £20k+ in dividends - this would bring at least a £2,500 ptax bill each on the net dividend received.
Do you think this would be allowable?
The cost to us receiving the money this way would be more tax efficient than in dividends or am i missing some kind of legal catch?
I checked the SMP Calculator on the HMRC website.....and it seems to work out better for us.
Thanks....
Newdad2be
Im wondering if anyone can help?
Me and my wife are both contractors, are 50/50 shareholders and both directors of one limited company...
My wife is expecting in March 2010 and currently we are both paid a low gross annual salaries of under £10k.
We have also taken enough dividends to find ourselves both in the higher rate of tax for this tax year.
We are currently considering paying my wife a bonus of £20k+ in the months of Oct / Nov 09 (£10k+ a month) to raise what can be claimed through SMP...
Being able to claim back 104.5% would help us financially, instead of paying the £20k+ in dividends - this would bring at least a £2,500 ptax bill each on the net dividend received.
Do you think this would be allowable?
The cost to us receiving the money this way would be more tax efficient than in dividends or am i missing some kind of legal catch?
I checked the SMP Calculator on the HMRC website.....and it seems to work out better for us.
Thanks....
Newdad2be
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