Taking dividends next year

[cojak]

I am a libertarian, i have always thought that taxation is theft, even before I started contracting. But now I think it even more so. If you want me to stop posting here, then I can do that. No problem.

Taxation as theft - Wikipedia

Do you use roads, have rubbish that needs collecting, use your GP or the NHS.

If not then I admire your principles, if not then pay at least some of your tax without whinging.

[LondonManc]

They could, but you would have to change the share allocation and issue different types of shares i.e. Alphabet Shares. If the only reason you do this is to avoid paying tax HMRC will take a dim view.

Whereas if the spouse is already company secretary with a shareholding then check with your accountant what can be taken.

[Lance]

Do you use roads, have rubbish that needs collecting, use your GP or the NHS.

If not then I admire your principles, if not then pay at least some of your tax without whinging.

exactly.
And 32% tax is 8% less than a permie would pay on the same money.
And Peter Simpleton can still pay into his pension.

[CompoundOverload]

Whereas if the spouse is already company secretary with a shareholding then check with your accountant what can be taken.

This, provided the wife is C.S and has a different share class to you and there is enough profit/retained earnings within the company, you can pay as much as you want to them - confirmed by accountant. Apparently it's basic tax planning.

[CompoundOverload]

exactly.
And 32% tax is 8% less than a permie would pay on the same money.
And Peter Simpleton can still pay into his pension.

If go PAYE but want to keep the LTD open and drain the divs to "top up" the salary, I presume you would just simply disclose the divs as normal via a SATR and pay the tax separately for the divs?

[northernladuk]

If go PAYE but want to keep the LTD open and drain the divs to "top up" the salary, I presume you would just simply disclose the divs as normal via a SATR and pay the tax separately for the divs?

Of course. Nothing changes in that respect.

[Lance]

If go PAYE but want to keep the LTD open and drain the divs to "top up" the salary, I presume you would just simply disclose the divs as normal via a SATR and pay the tax separately for the divs?

yup.
And make changes to the POA at the same time if you need to. Which is likely as you'll be draining the company so no expected POA.

[CompoundOverload]

yup.
And make changes to the POA at the same time if you need to. Which is likely as you'll be draining the company so no expected POA.

POA?

[WordIsBond]

POA?

Payment on Account (for self assessment). The amount you have to pay every Jan/July.

[Lance]

POA?

it's what you pay before you owe it.
I've already paid half my tax SA for tax year 2019/2020 even though the year hasn't ended.

Understand your Self Assessment tax bill: Payments on account - GOV.UK