• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Tax question

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #11
    Originally posted by Martin at NixonWilliams View Post
    It is difficult to say which is better, it depends on a number of things. If you're looking at making a £20k contribution then I think it makes sense to pay the dividend to ensure maximum effective relief. If the level of contribution is not important, you might prefer to make a £15k contribution instead based on your current level of earnings.
    My concern is that on the basis of my current (contracting) situation I will not be in a position to get HMRC to pay 60% of my pension contributions for some time (as I don't expect to be in the 100-120k taxable income bracket again soon). So it seems to me I should maximise this as a once-off (60% of 20k > 60% of 15k).

    "Bonus" was indeed meant to refer to a once-off payment (rather than regular salary pmts), so reducing MyCo's taxable income and corp tax.

    My concern is that I might be missing something and end up paying more personal income tax than I would have. (The permie salary had already attracted almost £50k of PAYE income tax)
    Last edited by chewbacca; 24 February 2015, 16:02.

    Comment


      #12
      Or should MyCo make a corporate contribution instead?

      Comment

      Working...
      X