I am about to start a contract after being made redundant.
I have been made redundant and will be paid off to the tune of £105000 at the end of May. Obviously aside from £30K tax free, the remaining payment will take me over the 40% tax threshold for 2012/2013. Does this mean that any payments to myself from my limited company via salary or dividend will be taxed at 40%.
If so, can I retain the profits in the company until 2013/2014 when I will have a new tax allowance.
Any thoughts on the best way to handle this in a legitimate way would be really helpful.