Hi all,
Have been contractor for a couple of years now and have a fairly sizeable amount of cash stagnating in the business account with the expected poor rate of interest we get these days.
Wanted to pick your brains on the positives/negatives of either taking out additional dividends above what I pay myself now at the 20% corp tax and investing that money (whilst still leaving adequate cash in the business for other reasons) or leaving it in there to continue building up.
The way I see it, unless I have an overly-simplistic understanding, is, if I'm continuing to work for the next 15-20 years, continuing paying myself the minimum salary & dividends, the only way I'm ever going to be able to touch that additional cash is to pay the corp tax as it comes out into my personal account. Better to pay the corporation tax and get hold of it now, where I can invest it and make it work for me, rather than in 10 years or so when I take it all out in one huge chunk for a property etc.?
Am I wrong/right in thinking this? Would be grateful for any more experienced Contractors to chip in here!
Thanks a lot
D
Have been contractor for a couple of years now and have a fairly sizeable amount of cash stagnating in the business account with the expected poor rate of interest we get these days.
Wanted to pick your brains on the positives/negatives of either taking out additional dividends above what I pay myself now at the 20% corp tax and investing that money (whilst still leaving adequate cash in the business for other reasons) or leaving it in there to continue building up.
The way I see it, unless I have an overly-simplistic understanding, is, if I'm continuing to work for the next 15-20 years, continuing paying myself the minimum salary & dividends, the only way I'm ever going to be able to touch that additional cash is to pay the corp tax as it comes out into my personal account. Better to pay the corporation tax and get hold of it now, where I can invest it and make it work for me, rather than in 10 years or so when I take it all out in one huge chunk for a property etc.?
Am I wrong/right in thinking this? Would be grateful for any more experienced Contractors to chip in here!
Thanks a lot
D
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