Rich/Tight contractors?

[d000hg]

I guess the key is in the word "yet"?

I haven't yet taken dividends this last Co year, as I'm still "living" on divs paid to the max amount last Co year.

Same here, and with the divi-income tax changes I wanted more time to figure this out rather than rush in and take dividends before thinking it through.

Although in an ideal world you take your annual dividend out at the START of the tax year not the end because you have enough in the company account... then you can max out your ISA on day 1 and maximise the potential. I've not reached the point of being able to do that thus far though.

[DaveB]

I've seen this mentioned in a post today and I don't want to hijack the thread to ask this question but how does someone make this work? I've seen it mentioned on the site before with regard to pensions (putting all ir35 contract earnings into a pension for example). I get that some of the guys on here have been doing it for years and might have a substantial pers acct warchest, but what's even the point of this? Isn't it just good sense to draw divis up to the top of the basic rates?

What am I missing?

I started out taking divi's on a monthly basis, then moved to quarterly, then 6 months and now do it annually. Taken 3 or 4 years to get to that point. The main advantage, other than looking more like a proper business, is that you can stick the lump sum in an offset mortgage account (which is what I do) or other higher interest earning account and draw down as you need it, earning much better interest on it than you would leaving it in the co. and drawing out a little each month.

[northernladyuk]

Some of the share holdings I have pay 2 interim and one final. Bloody annoying as you have to work out why you suddenly have some money.

The old man blackmails members of the judiciary on a similar schedule.

[vetran]

first world successes

You know I think its about time we started being proud of what we achieved.

[barrydidit]

The old man blackmails members of the judiciary on a similar schedule.

Tight and Rich are the opposite of the two adjectives I would use to describe your old man, but there you go.

[MrMarkyMark]

Tight and Rich are the opposite of the two adjectives I would use to describe your old man, but there you go.

Loose and Poor?

[barrydidit]

Loose and Poor?

Nowt gets past you does it?

[pr1]

You know I think its about time we started being proud of what we achieved.

and likewise the third world should start feeling ashamed?

[kaiser78]

The traditional way was for companies to pay a dividend once a year, and a lot of companies still do that. Paying yourself less than you need to live on and topping it up with regular dividends is more of a tax avoider thing.

But most contractors take monthly dividends, no ?

[vetran]

and likewise the third world should start feeling ashamed?

no pride doesn't require shame it lives well on its own.

But in the LEDCs (they don't like being called the Third world apparently) maybe we could shame the leaders & dictators who are mostly to blame for the last 50+ years instead of following the 'its the Imperialist west's fault' mantra.

India is doing well, Pakistan isn't. Hong Kong is doing well, Africa isn't. explain why.

Clearly something other than once being part of the Empire is causing these difficulties.