What's a fair wage?

[Fridge]

17 minutes ago, Howard Marks said:

I'm not a tax expert so hence the question. Is it possible that someone earning £100k using the limited company dividend method pays less tax (not proportion of earnings, less tax overall) than someone earning say, £30k per annum?

I can’t be bothered working it out exactly but no, you would have to be really ripping the piss to do that but what you would save money on as rather than pay 40% tax on everything you earn over 50k, you could pay yourself a wage of something below that and take the rest out in dividends at 32.5% - I could be wrong someone will know better than me as I get an accountant to do all that shit

[Howard Marks]

6 minutes ago, Fridge said:

I can’t be bothered working it out exactly but no, you would have to be really ripping the piss to do that but what you would save money on as rather than pay 40% tax on everything you earn over 50k, you could pay yourself a wage of something below that and take the rest out in dividends at 32.5% - I could be wrong someone will know better than me as I get an accountant to do all that shit

OK, understood, I think. No one can ever really explain how it works, hence my question. It's implied that it's pulling a fast one but there are drawbacks to setting up as a limited company, surely?

Very similar to when you ask someone what they do offshore and they mumble "Christmas Trees" or something to that effect with no elaboration.

[NEM]

3 minutes ago, Howard Marks said:

OK, understood, I think. No one can ever really explain how it works, hence my question. It's implied that it's pulling a fast one but there are drawbacks to setting up as a limited company, surely?

Very similar to when you ask someone what they do offshore and they mumble "Christmas Trees" or something to that effect with no elaboration.

They're in charge of putting up the christmas decorations obviously

[NEM]

57 minutes ago, Howard Marks said:

I'm not a tax expert so hence the question. Is it possible that someone earning £100k using the limited company dividend method pays less tax (not proportion of earnings, less tax overall) than someone earning say, £30k per annum?

No not even close - the Ltd company contractor would be paying about the £30k in tax

[dazzy_deff]

15 minutes ago, NEM said:

No not even close - the Ltd company contractor would be paying about the £30k in tax

Better comparison would be what would the ltd company contractor compared to a £100k staff position. Bet there would be a significant difference. 

[Guest milne_afc]

About 20% difference isn’t it?

[manboobs109]

Do you not need to be vat registered to claim vat back? Means you'd need to charge it.

[Redforever86]

7 minutes ago, manboobs109 said:

Do you not need to be vat registered to claim vat back? Means you'd need to charge it.

Aye, need to be turning over £83k I think it is. 
 

The thing with a ltd co is you have to pay corporation tax and an accountant about a grand to audit yir accounts. 

[NEM]

34 minutes ago, Captain Caveman said:

Ltd company contractor pays 19% tax on 100k but with dividends and the fact you can get a few percent of Vat back means its around 15%. You can also take a much smaller wage keep the money in ltd company them when you eventually close it down its at 10%

19% corporation tax but also PAYE, employer & employee NI and dividend tax on top of that.

[manboobs109]

48 minutes ago, Redforever86 said:

Aye, need to be turning over £83k I think it is. 
 

The thing with a ltd co is you have to pay corporation tax and an accountant about a grand to audit yir accounts. 

I know you can register voluntarily below that. I looked into it but a lot of hassle for a few grand benefit.

I'm sole trader. Limited company a fucker of a hassle imo.

[Poodler]

Saucoony

[Henry]

45 minutes ago, Sooper-hanz said:

You sell shoes, Moobzo ?

Fishmonger.

[maryhilldon]

Spy 

[Matt Armstrong's Dog]

20 hours ago, NEM said:

19% corporation tax but also PAYE, employer & employee NI and dividend tax on top of that.

Do you ken anything about the Loan Charge min? 

[Ten Caat]

19 hours ago, Dad said:

Mantits Shoe Emporium

 

Such terrific brands as:

Hi (cholesterol) Tec

Bit rich coming from you, seeing that Jonah's Tower of T-Shirts is doing such rip-roaring business

A wee fire for an insurance job prior to the emigration is probably your best hope of getting close to breaking even on that particular venture

[Redforever86]

1 hour ago, Ten Caat said:

Bit rich coming from you, seeing that Jonah's Tower of T-Shirts is doing such rip-roaring business

A wee fire for an insurance job prior to the emigration is probably your best hope of getting close to breaking even on that particular venture

Paedofila

[strachanmcgheegoal]

On 10/11/2021 at 1:11 PM, NEM said:

19% corporation tax but also PAYE, employer & employee NI and dividend tax on top of that.

Exactly.  Ltd companies look magic whilst the money is sitting in the company.  Its the extra step taking it out from the company to the individual that's the killer.

[KenDodd'sDad]

The IR35 thing was a pisstake, all these cunts now moaning about having to pay tax like the rest of us.

[fatjim]

On 10/7/2021 at 10:51 AM, daytripping said:

Tory MP asks for payrise as living on £82k a year can be 'really grim' | Metro News

I find myself agreeing with Sir Peter on this one, £82k a year for an MP really isn't a huge amount of money considering how long they're away from home and the hours they put in. They should at least be on a par with doctors.

It also begs the question of what is an acceptable wage for anyone doing a job, I think the minimum is far too low, if businesses can't afford to pay people what they need to live on then they shouldn't be employing people, I'd say £15 an hour should be a base. I'd also say the average wage should be nearer £50k instead of the current £30, as Boris said yesterday, we should be aiming for a high skilled high paid workforce. People shouldn't have to scrape by. It's time for change, hopefully Boris will deliver.

It's all talk from Boris. He says one thing but the reality is far from it. A wee bit like you and your contrarian attitude. 

Boris keeps saying they are opening 40 new hospitals but the fact is they are just upgrading or adding to existing hospitals. the actual figure is a lot lower. You just can't believe anything he says. 

[dazzy_deff]

3 hours ago, KenDodd'sDad said:

The IR35 thing was a pisstake, all these cunts now moaning about having to pay tax like the rest of us.

Contractors I know were demanding the company paid them extra to cover thelr additional tax deductions as they said it was unfair they were having to take a paycut when they were forced to go staff. Haha. Never mind the fact they thought they were worth an extra 20k or whatever to the rest of their department. 

[Fridge]

2 hours ago, dazzy_deff said:

Contractors I know were demanding the company paid them extra to cover thelr additional tax deductions as they said it was unfair they were having to take a paycut when they were forced to go staff. Haha. Never mind the fact they thought they were worth an extra 20k or whatever to the rest of their department. 

Yes but contractors don’t get pension contributions etc

[Ohjimmyjimmy]

My heart bleeds for them.

They should sort their own fucking pensions out.

[Redforever86]

12 minutes ago, Ohjimmyjimmy said:

My heart bleeds for them.

They should sort their own fucking pensions out.

Ken surely that’s obvious. 

[dazzy_deff]

40 minutes ago, Fridge said:

Yes but contractors don’t get pension contributions etc

Yes but they were being offered staff roles therefore being offered all the normal staff benefits. They also wanted an uplift to cover the additional tax they would pay. 

[Studebaker-90]

On 10/7/2021 at 10:53 AM, Roberto said:

Pull the other one min.

Or change tact.

Tack 

[caledonia]

On 10/7/2021 at 6:04 PM, milne_afc said:

Dyce(shithole)

Give us a clue

[caledonia]

57 minutes ago, Bad_Mobby said:

Green trees 

Fuck sake forgot about at one despite being in it many times

Was thinking more Aberdeen than Dyce