Setting up a Company
28 January 2012, 01:53 PM
#31
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Hi Ding,
We are in a slightly different position as my business is my only source of income.
Simplistic perhaps wasnt the right word but from your post it read as you were prusming that because the income from the LTD company was in the 40% tax bracket then that is what tax you pay. However one of the benefits of being a shareholder in a ltd company is there are legal loopholes on how you extract the money without paying personal tax at 40%.
i would seek other advice, im no expert i just know what tax I pay.
However if you have not heard the word dividend mentioned by your accountant then I would be concerned at the quality of the advice you are getting. Its the oldest way of getting money out at a lower tax rate.
Chop
We are in a slightly different position as my business is my only source of income.
Simplistic perhaps wasnt the right word but from your post it read as you were prusming that because the income from the LTD company was in the 40% tax bracket then that is what tax you pay. However one of the benefits of being a shareholder in a ltd company is there are legal loopholes on how you extract the money without paying personal tax at 40%.
i would seek other advice, im no expert i just know what tax I pay.
However if you have not heard the word dividend mentioned by your accountant then I would be concerned at the quality of the advice you are getting. Its the oldest way of getting money out at a lower tax rate.
Chop
Thanks Chop. The accountant came recommended by others in the same line of work as me so I'm sure he is ok.
Yes dividends have been talked about extensively. The issue is as mentioned that because of other sources of income dividends would still incur significant tax liability for me.
Since I don't need the money right now the legal loophole I'm using is the one I mentioned ie entrepeneurs relief.
Things could change for all of us. There has been a lot of muttering by the Libs about closing as yet unspecified legal tax loopholes. It could be the likes of you and me that they are after......
28 January 2012, 04:19 PM
#32
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The threshold before you pay tax is reasonably high - nominally £35k last time I checked - let me accountant do all that now. The calculation is complex though - not quite the same as a PAYE deduction!
28 January 2012, 04:56 PM
#33
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I would say ent rel' is a very high risk strategy for getting your profits.
Even if your business is making a LOT in profits there are still lots of ways to eat into that profit which are much lower risk.
Even if your business is making a LOT in profits there are still lots of ways to eat into that profit which are much lower risk.
28 January 2012, 09:48 PM
#36
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29 January 2012, 10:10 AM
#38
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I would talk to someone about it who really knows their stuff. Good advice will cost you though, but it depends how much we are talking about. Few grand, I might take the risk, tens of thousands perhaps its time to pay someone, more than that its time to get a specialist.
29 January 2012, 10:13 AM
#39
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Btw I am no expert but i tried diy before and it cost me £k's. I now pay someone who looks after my tax position for what's best for my situation. Everyone is different and the rules change quite often.
29 January 2012, 05:49 PM
#40
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Bollocks. Only where there has been misfeasance will a director be liable
29 January 2012, 06:13 PM
#41
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29 January 2012, 06:20 PM
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29 January 2012, 06:30 PM
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29 January 2012, 06:33 PM
#44
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29 January 2012, 06:38 PM
#45
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I think there is a chance, it depends how long term you are looking.
I would talk to someone about it who really knows their stuff. Good advice will cost you though, but it depends how much we are talking about. Few grand, I might take the risk, tens of thousands perhaps its time to pay someone, more than that its time to get a specialist.
I would talk to someone about it who really knows their stuff. Good advice will cost you though, but it depends how much we are talking about. Few grand, I might take the risk, tens of thousands perhaps its time to pay someone, more than that its time to get a specialist.
As I keep saying I am talking to somebody who hopefully knows what he is doing. He specialises in people in my line of work including those who earn a lot more than me.
Billy you still haven't explained why you think its a high risk strategy.
29 January 2012, 10:15 PM
#48
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29 January 2012, 10:19 PM
#49
It wasn't for me it was for the OP.........
I've got the NHS Litigation Authority and my Defense Union which costs me an arm and a leg...
The original post (not by me) was about setting up a limited company to limit the cost of a medical negligence claim..
Shaun
I've got the NHS Litigation Authority and my Defense Union which costs me an arm and a leg...
The original post (not by me) was about setting up a limited company to limit the cost of a medical negligence claim..
Shaun
29 January 2012, 10:19 PM
#50
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Not really mate. You described my strategy as 'high risk'. You then said there is a 'chance' the law might change.
So my strategy is high risk on the basis that the law 'may' change when actually the Tories increased ent relief when they came into power.
Yes the law may change but then again it will more than likely not. So I'm still not sure why this makes it high risk
30 January 2012, 10:51 AM
#52
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I've just heard of people been odd and claiming all kinds of things and just wanted to make sure that in the event of a claim for whatever the complete liability finanically is that of the insurance and the company not personal assets.
Steve
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