Originally posted by mailsmsi
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As others have said, you really need an accountant to sort your stuff out for you. There isn't an alternative, there is no way around it. The paperwork you need to file is way too complex and you will get in a shed load of trouble if you get it wrong. Trust us on that one. That said, you aren't in any great strife after just 1 year of trading, but now it's time to sort out your company and personal tax affairs out and figure out how much tax you owe.
Firstly you have to understand if you are in or out of IR35. Most people are outside, the Inland Revenue would like you to think that you are inside. There are companies which will review your contract for you if you want a reasonably definitive answer.
If you are outside IR35 then you should take about 6000 as salary and the rest as dividends to minimise your tax. If this takes you into the higher rate tax bracket then consider if you can do an income split with your spouse (if you have one and they don't earn income).
If you are inside IR35 then you have to take the money as salary and pay a load of tax. See the calculators here. There are other options. If you are older and you earn a lot of money (ie into the higher rate tax bracket) then you may want to put a load of money into a personal pension and avoid a lot of tax.
To reiterate: You have to get an accountant and they will talk you through the options above. The PCG can recommend one to you if you don't have one in mind. This is NOT a DIY job.
Good luck!
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