I'm thinking of my strategy next year for approaching renumeration. Previously I've done the standard mix of salary/dividend, but with all the changes making it less attractive to do so I'm thinking of just biting the bullet, flipping it on it's head, and paying myself just using standard PAYE, keeping the salary modest and making up in the good times using bonuses, and paying my 5000 tax free dividend allowance at year end. To be honest, I think the tax savings paying a majority dividend aren't huge now from what I'm reading and calculating, so this way should just be simpler all round. If sticking dividend majority only saves me a couple of grand a year then it's not work the hassle to be honest.
My question is, does this reduce the chance of being hit by IR35? My understanding is that if you are investigated under IR35 and found to be non-compliant, then you're hit with a bill for PAYE. It seems to me that if you've already been paying yourself under PAYE there would be little point in HMRC ever investigating you since there would be little to recoup? Is my understanding correct? Because if so, it seems like an additional tick in the "good idea" column for going majority PAYE to me...
My question is, does this reduce the chance of being hit by IR35? My understanding is that if you are investigated under IR35 and found to be non-compliant, then you're hit with a bill for PAYE. It seems to me that if you've already been paying yourself under PAYE there would be little point in HMRC ever investigating you since there would be little to recoup? Is my understanding correct? Because if so, it seems like an additional tick in the "good idea" column for going majority PAYE to me...
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