How much do you pay yourself?

[Malcolm Buggeridge]

Following on from my earlier post about accidentally overpaying myself last year, I was just wondering how many of you just pay yourselves divis up to the higher rate threshold
(not a lot is it? about £32k + your tax free allowance) & get by on that. I do, however, take full advantage of expenses as I'm away from home Monday- Friday so every cup of coffee etc is receipted. Suprising how much it all adds up & claiming all this does lighten the load on my personal finances.

I don't mind paying a bit of higher rate tax but as soon as you cross the threshold you have to make payments on account and the whole thing becomes a total ball ache.

[Malcolm Buggeridge]

Q. to those of you who pay divis to a partner / someone else.

I assume they are non working and hence have the full alocation of the tax free allowance available. So do you pay them a divi of, say £7k, leave them with a grand or so as a token of your appreciation and then claw back the remaining £6k for yourself?

[NotAllThere]

Don't be silly. If you issue a divident payment to a shareholder, it's the shareholder's money. There is no "clawing back".

Of course, in my day, before HMRC started all this S660A nonsense, all the dividends were paid into a joint account so the question was moot anyway. A true contractor wouldn't quibble over 6K in anycase.

[Malcolm Buggeridge]

Don't be silly. If you issue a divident payment to a shareholder, it's the shareholder's money. There is no "clawing back".

Of course, in my day, before HMRC started all this S660A nonsense, all the dividends were paid into a joint account so the question was moot anyway. A true contractor wouldn't quibble over 6K in anycase.

So, I make my mate a shareholder, pay him 7k. He pays me 6k and I leave him with a grand for the trouble.

What's wrong with that?

And, incidentally, £6k is a lot of money to me. I could live for 2 months off of that.

[MarillionFan]

I try to be as tax effective as possible, but I go over the divi rate each year & pay any due taxes.

[ctdctd]

Enough to top the NI threshold of £144 per week.
Rest goes into pension as a myco contribution

[Platypus]

So, I make my mate a shareholder, pay him 7k. He pays me 6k and I leave him with a grand for the trouble.

What's wrong with that?

That's tax EVASION

[escapeUK]

I was paying upto the higher rate threshold, but too much of my money was getting trapped. And unless I ended up not working for a long time I didnt see how I could get it out.

And yes, its my money, its my company.

[EternalOptimist]

Q. to those of you who pay divis to a partner / someone else.

I assume they are non working and hence have the full alocation of the tax free allowance available. So do you pay them a divi of, say £7k, leave them with a grand or so as a token of your appreciation and then claw back the remaining £6k for yourself?

you are either greedy, stoopid or a wind up merchant


or a greedy stoopid wind up merchant

[eek]

a greedy stoopid wind up merchant

WEOS with wings on.