I started my first contract in September and have just received my first invoice payment, phew!
My earnings from permanent job salaries since April this year come to £26.5k, and for some reason my tax code was changed earlier in the year down to 108T which means I have hardly any tax free income.
My question is whether I should/can just pay myself in dividends for the rest of this tax year as I'm already well over the amount where there's no income tax & nics to pay. All the info I can find on salary vs dividends talk about finding the right balance and assume no previous salary income for the year.
I don't yet have an accountant, and I'm not even sure I really need one as I like to handle numbers myself. I'm not sure if I'm being incredibly naive thinking I can manage without one.
Any insight welcome.