Originally posted by zappakat
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Dividends beyond £5k taxed wef 2016!!
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Originally posted by NorthWestPerm2Contr View PostThat is correct, make sure to take every dividend possible to the penny and split with Mrs if you have one. Next year you will be getting raped so prepare yourself.
Preparing for full-on human-centipede when expense relief is stopped.
Clearly Obsorne is a terrorist.Comment
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Originally posted by NorthWestPerm2Contr View PostThat is correct, make sure to take every dividend possible to the penny and split with Mrs if you have one. Next year you will be getting mugged so prepare yourself.
Let's go with mugged.Comment
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Originally posted by Burnerg81 View PostHi all.
First post so good to get confirmation from any accountants on the forum but isn't anyone taking out dividends to the 20% tax limit better off now?
Eg.
In 2015/16
Salary £8052
Dividends £30899 = £34333 after 10% tax credit so you've hit the £42385 20% limit
Total take home pay = £8052 + £30899 = £38951
In 2016/17
Salary £8052
Dividends: £34648 available as no tax credits anymore which means £5k tax free and £29648 taxable at 7.5% = £27424
Total take home pay = £8052 + £5000 + £27424 = £40476
Unless I've incorrectly picked up that the tax credit is being abolished in favour of the new percentages.
The cost to your company in 15/16 is £38951. The cost to your company in 16/17 is £42700. That extra £1500 take home comes at a cost of almost £4K to your company. If you needed the extra £1500 take home this year, it would only cost the company £2K rather than £4K.Comment
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I've decided to jump right into this and am today taking additional dividends that will push me well in to higher rate taxComment
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Isn't £2k a year about the profit a typical contractor makes per year from the VAT FRS?Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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The new dividend tax: a simple case of double taxation - Telegraph
Article in the Telegraph today. Richard Evans is asking people to email with their opinions.Comment
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Originally posted by d000hg View PostIsn't £2k a year about the profit a typical contractor makes per year from the VAT FRS?
Not all contractors do. I don't for one.
Serious point, I would be happy to take your 'holier than thou' comments when you post your accounts here and prove that you put your money where your mouth is i.e. pay voluntarily PAYE/Full EE and ER NI on your dividends or pay all your profit out as PAYE salary.
Until then, it's all hot air!Comment
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