General idea in contracting

[bobmorane]

Hi,

Being new in this domain as well as in UK, I am wondering what's people point of view when it comes to pay tax.
I guess few of you go over quickly the 1st threshold of dividends tax advantage (~30k).
Wondering what is your strategy above that? Keep the money in the company or simply accept to pay tax (which in a way is for the benefit of everyone to get a better living in UK!).
The case might differ depending on the marital status, probably a single can afford keeping the money in the company while some would have quite higher running expenses.

but would be curious to know your philosophy on this as I don't want to get the wrong approach!

[WTFH]

1. Get a good accountant.
2. Get them to explain your options to you.


We can tell you what each of us does, but you'd need to know our personal financial positions and understand why each of us has chosen what we have chosen.

[MrMarkyMark]

Hi,

Being new in this domain as well as in UK, I am wondering what's people point of view when it comes to pay tax.
I guess few of you go over quickly the 1st threshold of dividends tax advantage (~30k).
Wondering what is your strategy above that? Keep the money in the company or simply accept to pay tax (which in a way is for the benefit of everyone to get a better living in UK!).
The case might differ depending on the marital status, probably a single can afford keeping the money in the company while some would have quite higher running expenses.

but would be curious to know your philosophy on this as I don't want to get the wrong approach!

First Timers link on the right, I suggest you read it.

HTH

[LucidDementia]

My philosophy is as follows:

Secure the highest standard of living possible for my family both in the present and the future whilst giving Osborne and other moronic, under-educated and totally unqualified politicians the bare minimum without breaking the law and preferably without breaking much of a sweat.

[northernladuk]

Hi,

Being new in this domain as well as in UK, I am wondering what's people point of view when it comes to pay tax.
I guess few of you go over quickly the 1st threshold of dividends tax advantage (~30k).
Wondering what is your strategy above that? Keep the money in the company or simply accept to pay tax (which in a way is for the benefit of everyone to get a better living in UK!).
The case might differ depending on the marital status, probably a single can afford keeping the money in the company while some would have quite higher running expenses.

but would be curious to know your philosophy on this as I don't want to get the wrong approach!

There is no right or wrong strategy and it will differ per individual. Do what is right for you, forget everyone else. No point getting feedback about staying under 30k if you can't afford it is there.

That said the only strategy you want to focus on from the beginning is getting a 3-6 month warchest of spare money (excluding the tax mans money) in the business in case you can't get the second, or third gig in decent time. Once you have your warchest then speak to you accountant and plan your finances to suit you.