Contractor UK Bulletin Board - View Single Post - Should I trade as a Limited Company, umbrella or composite

3rdknight · 11th November 2006, 10:45

Hi all, fascinating thread ... so much so that it's prompted me to add my inaugural reply!

Dragging this thread screaming and kicking back on to topic(ish) ... somewhere back along there was brief discussion about paying minimal salaries and the rest in dividends up to higher rate tax thresholds, keeping the residue in the company.

I'm just about to start contracting and getting myself organised as we speak. I seem to recall having seen some discussion in the past about monthly dividends attracting unwanted attention from HMRC ... is this true? Is it generally considered better practice to pay them quarterly?

I suffer from an exhorbitantly oppressive mortgage payment, a wife and two kids - not sure they'd appreciate me dropping to minimum wage!

11th November 2006, 10:45	#117
3rdknight Not worth listening to Join Date: May 2006 Location: Gloucester Posts: 2	Frequency of dividends Hi all, fascinating thread ... so much so that it's prompted me to add my inaugural reply! Dragging this thread screaming and kicking back on to topic(ish) ... somewhere back along there was brief discussion about paying minimal salaries and the rest in dividends up to higher rate tax thresholds, keeping the residue in the company. I'm just about to start contracting and getting myself organised as we speak. I seem to recall having seen some discussion in the past about monthly dividends attracting unwanted attention from HMRC ... is this true? Is it generally considered better practice to pay them quarterly? I suffer from an exhorbitantly oppressive mortgage payment, a wife and two kids - not sure they'd appreciate me dropping to minimum wage!