I have been contracting under my Ltd company for 4 years now and only last year I got hit with a massive tax bill for PAYE which was frightening and has now resulted in a change of accountant.
I am not sure why I didn't hit these issues in previous years or what "magic" my previous account did (same company) but it is what it is and you learn from your mistakes.
In discussion with my new accountant and yet again they try to explain accountancy to me which is of zero use! I use my limited company as a vehicle to pay me so I simply want to know how much I can withdraw in dividends, what I should claim as expenses and based on the dividend what I should put aside for PAYE. I want a month by month breakdown and for this to be for the whole year (as respect tax liability is over the financial year). It can't be that hard can it?
I fully appreciate if my contract changes and I earn in excess of 100k in the financial year I have more tax liability (this is what caught me last year; confused why not years before?) for PAYE but surely a spreadsheet for the year can automatically calculate this for me so I know how much I need to have put aside for payments on account for PAYE as well as Corporation Tax. Does anybody have any useful links for such type spreadsheets?
Appreciate the accountant feedback is "only take dividends on what you need to live". What sense is there in that? I basically want as much of my gross pay as possible and what reservations to make for PAYE & corp tax so I don't get stung\hit by anything unexpected.
I am not sure why I didn't hit these issues in previous years or what "magic" my previous account did (same company) but it is what it is and you learn from your mistakes.
In discussion with my new accountant and yet again they try to explain accountancy to me which is of zero use! I use my limited company as a vehicle to pay me so I simply want to know how much I can withdraw in dividends, what I should claim as expenses and based on the dividend what I should put aside for PAYE. I want a month by month breakdown and for this to be for the whole year (as respect tax liability is over the financial year). It can't be that hard can it?
I fully appreciate if my contract changes and I earn in excess of 100k in the financial year I have more tax liability (this is what caught me last year; confused why not years before?) for PAYE but surely a spreadsheet for the year can automatically calculate this for me so I know how much I need to have put aside for payments on account for PAYE as well as Corporation Tax. Does anybody have any useful links for such type spreadsheets?
Appreciate the accountant feedback is "only take dividends on what you need to live". What sense is there in that? I basically want as much of my gross pay as possible and what reservations to make for PAYE & corp tax so I don't get stung\hit by anything unexpected.
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