Fridge Posted October 11, 2021 Share Posted October 11, 2021 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 Link to comment
Howard Marks Posted October 11, 2021 Share Posted October 11, 2021 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. Link to comment
NEM Posted October 11, 2021 Share Posted October 11, 2021 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 Link to comment
NEM Posted October 11, 2021 Share Posted October 11, 2021 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 Link to comment
dazzy_deff Posted October 11, 2021 Share Posted October 11, 2021 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. Link to comment
Guest milne_afc Posted October 11, 2021 Share Posted October 11, 2021 About 20% difference isn’t it? Link to comment
manboobs109 Posted October 11, 2021 Share Posted October 11, 2021 Do you not need to be vat registered to claim vat back? Means you'd need to charge it. Link to comment
Redforever86 Posted October 11, 2021 Share Posted October 11, 2021 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. Link to comment
NEM Posted October 11, 2021 Share Posted October 11, 2021 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. Link to comment
manboobs109 Posted October 11, 2021 Share Posted October 11, 2021 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. Link to comment
Henry Posted October 11, 2021 Share Posted October 11, 2021 45 minutes ago, Sooper-hanz said: You sell shoes, Moobzo ? Fishmonger. Link to comment
Matt Armstrong's Dog Posted October 12, 2021 Share Posted October 12, 2021 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? Link to comment
Ten Caat Posted October 12, 2021 Share Posted October 12, 2021 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 Link to comment
Redforever86 Posted October 12, 2021 Share Posted October 12, 2021 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 Link to comment
strachanmcgheegoal Posted October 12, 2021 Share Posted October 12, 2021 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. Link to comment
KenDodd'sDad Posted October 12, 2021 Share Posted October 12, 2021 The IR35 thing was a pisstake, all these cunts now moaning about having to pay tax like the rest of us. Link to comment
fatjim Posted October 12, 2021 Share Posted October 12, 2021 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. Link to comment
dazzy_deff Posted October 12, 2021 Share Posted October 12, 2021 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. Link to comment
Fridge Posted October 12, 2021 Share Posted October 12, 2021 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 Link to comment
Ohjimmyjimmy Posted October 12, 2021 Share Posted October 12, 2021 My heart bleeds for them. They should sort their own fucking pensions out. Link to comment
Redforever86 Posted October 12, 2021 Share Posted October 12, 2021 12 minutes ago, Ohjimmyjimmy said: My heart bleeds for them. They should sort their own fucking pensions out. Ken surely that’s obvious. Link to comment
dazzy_deff Posted October 12, 2021 Share Posted October 12, 2021 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. Link to comment
Studebaker-90 Posted October 12, 2021 Share Posted October 12, 2021 On 10/7/2021 at 10:53 AM, Roberto said: Pull the other one min. Or change tact. Tack Link to comment
caledonia Posted October 20, 2021 Share Posted October 20, 2021 On 10/7/2021 at 6:04 PM, milne_afc said: Dyce(shithole) Give us a clue Link to comment
caledonia Posted October 20, 2021 Share Posted October 20, 2021 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 Link to comment
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