BN66 - Time to fight back!!!

[scott_free]

Originally Posted by Lewis

When I was with an MSC years ago (same as running your own limited) I was consistently going into the higher rate tax bracket and took home between 70%-75%. Depending upon expenses, rate, holidays etc..

Now I have my own limited company and my wife takes dividends (she doesn't work, we have 50/50 dividends) I am now getting approx. 82%.

If your other half is a higher rate tax payer then you cannot do the dividend thing, so you are back to 70%-75%. But you can make large pension payments for example, not that bad an idea.

I thought the hmrc were clamping down in that area too (divi's to partners)

[Lewis]

Originally Posted by scott_free

I thought the hmrc were clamping down in that area too (divi's to partners)

Yep, there is only this year left to do it. New anti-income splitting rules are due to come in next April. But hopefully they won't

But look ... I'm not a tax advisor or anything. I'm just trying to point out there are lots of options with limited companies (e.g. big pensions, IR35 insurance, income splitting etc..). The returns are probably going to be less than Montpelier are offering you but it is a MUCH MUCh safer way to operate. That's all I'm saying.

[Archangel]

Originally Posted by Lewis

When I was with an MSC years ago (same as running your own limited) I was consistently going into the higher rate tax bracket and took home between 70%-75%. Depending upon expenses, rate, holidays etc..

Now I have my own limited company and my wife takes dividends (she doesn't work, we have 50/50 dividends) I am now getting approx. 82%.

If your other half is a higher rate tax payer then you cannot do the dividend thing, so you are back to 70%-75%. But you can make large pension payments for example, not that bad an idea.

Or just keep the excess in the company deposit account earning 5% for a rainy day or untill you retire and then take it out at basic rate tax rate (so pay < 20% tax).

[scott_free]

Originally Posted by Lewis

Yep, there is only this year left to do it. New anti-income splitting rules are due to come in next April. But hopefully they won't

But look ... I'm not a tax advisor or anything. I'm just trying to point out there are lots of options with limited companies (e.g. big pensions, IR35 insurance, income splitting etc..). The returns are probably going to be less than Montpelier are offering you but it is a MUCH MUCh safer way to operate. That's all I'm saying.

yes your right, I'm even debating as to whether to use one of the popular contractor accounts, or a local chap who wouldn't attract so much attention from the IR - they are obviously out to catch as many as possible for the least effort, not that I've anything to hide

[BrilloPad]

Originally Posted by scott_free

yes your right, I'm even debating as to whether to use one of the popular contractor accounts, or a local chap who wouldn't attract so much attention from the IR - they are obviously out to catch as many as possible for the least effort, not that I've anything to hide

When I go ltd in October, I will use the accountant I used for 18 years before mp. He charges alot (£2k per year) but he is totally on the ball - he is a member of several accountant committees and he has a great record with hmrc. Well worth an extra £1k per year in my book.

<cue Mal to rip me apart for alternating between loe-risk/high-risk strategies>

Of course I will join PCG too!

[BolshieBastard]

Im amazed some people have managed to get info out of MTM. Despite emails and calls they tell very little.

I've received nothing from MTM of late nor anything from HMRC. TBH, Im not bothered about fighting another corner with MTM. Do I need to contact HMRC to find out how much I owe and just 'pay up' or arrange a CDT?

[poppy01]

Originally Posted by BolshieBastard

Im amazed some people have managed to get info out of MTM. Despite emails and calls they tell very little.

I've received nothing from MTM of late nor anything from HMRC. TBH, Im not bothered about fighting another corner with MTM. Do I need to contact HMRC to find out how much I owe and just 'pay up' or arrange a CDT?

Just wait... CTD is the best idea if you have the cash, this forum will keep you informed as to progress of the Judicial Review, and subsequent European Court action if thats lost. It may be 2 years til you have to pay anything.

[BrilloPad]

Originally Posted by poppy01

Just wait... CTD is the best idea if you have the cash, this forum will keep you informed as to progress of the Judicial Review, and subsequent European Court action if thats lost. It may be 2 years til you have to pay anything.

WHS++

[TheGadgetMan]

I spoke to MP yesterday friday and I was told a little more about the agreement with HMCE...Ive not seen this on the forums yet so I thought it might be worth posting...the agreement is that all partnership accounts will be submitted to IR by end of July...

IR have agreed that if this deadline is met then NO PENALTIES WILL BE APPLIED...I'm not sure they had any grounds to apply any penalties in the first place given that all the figures were originally declared on the SA forms in the first place...but anyway...its one less thing to worry about...

also, they mentioned that they are going thru an (independent) quality assurance exercise to ensure that every single set of Partnership Accounts reflects the figures on our submitted Tax Returns...again one less thing to worry about...

...the creation of all the accounts is well on track for end July...

MP volunteered to me (ie I didn't ask for this info, they just told me anyway) that if any accounts miss the deadline and a penalty/fine is applied then MP will pay it on behalf of the contractor...I think this shows a certain amount of goodwill on MPs part but I'm trying not to read too much into it...

my contact at MP then promised to get back to me the same day with some other info that I requested...and guess what, he did!...

I also stated to him (again) that there are a lot of worried people out there...MP need to get some communication going out...even if it just says 'Guys, we're on the case'...thats all we need...he agreed that MP need to do this...time will tell whether they take any heed...

<end of update>

[BolshieBastard]

Originally Posted by TheGadgetMan

I spoke to MP yesterday friday and I was told a little more about the agreement with HMCE...Ive not seen this on the forums yet so I thought it might be worth posting...the agreement is that all partnership accounts will be submitted to IR by end of July...

IR have agreed that if this deadline is met then NO PENALTIES WILL BE APPLIED...I'm not sure they had any grounds to apply any penalties in the first place given that all the figures were originally declared on the SA forms in the first place...but anyway...its one less thing to worry about...

also, they mentioned that they are going thru an (independent) quality assurance exercise to ensure that every single set of Partnership Accounts reflects the figures on our submitted Tax Returns...again one less thing to worry about...

...the creation of all the accounts is well on track for end July...

MP volunteered to me (ie I didn't ask for this info, they just told me anyway) that if any accounts miss the deadline and a penalty/fine is applied then MP will pay it on behalf of the contractor...I think this shows a certain amount of goodwill on MPs part but I'm trying not to read too much into it...

my contact at MP then promised to get back to me the same day with some other info that I requested...and guess what, he did!...

I also stated to him (again) that there are a lot of worried people out there...MP need to get some communication going out...even if it just says 'Guys, we're on the case'...thats all we need...he agreed that MP need to do this...time will tell whether they take any heed...

<end of update>

Having been 'missed' from at least 2 MP updates, I'll believe that when I see it \ receive it!