Contracting to Permy

[skillmaster22]

Just switched from contracting to permy (...) my first months pay will be at the end of march. I have been drawing a salary for 2015/2016 tax year and haven't claimed my dividends yet, planning on doing so before the end of the tax year.

Will it be wise to declare an amount under the higher rate tax so that I dont push my self over the tax limit. I am guessing that my salary from the last month of the tax year at my permy job will push me over the higher rate tax limit which I figure is £43,001 right now?

[LondonManc]

Not cut out to be a contractor? Not brave enough to ask your accountant? If you can find him, maybe you can hire NLUK.

He'll gladly patronise you with platitudes about asking your accountant, reminding you that contractors don't have line managers and that you should abandon the public sector, all without actually reading your post.


In terms of what you've asked, if you're well below the £43k and will be come April, take the £5k.
I'd also speak to your accountant about the most efficient way of winding up your company, especially if you intend staying permie for at least two years.

[skillmaster22]

Suppose I should have mentioned the salary is the personal allowance currently + expenses so I should be able to take more than 5k

[northernladuk]

Not cut out to be a contractor? Not brave enough to ask your accountant? If you can find him, maybe you can hire NLUK.

He'll gladly patronise you with platitudes about asking your accountant, reminding you that contractors don't have line managers and that you should abandon the public sector, all without actually reading your post.

Oi!!!

I read 'em...... but don't always care/understand what they say.

[barrydidit]

Just switched from contracting to permy (...) my first months pay will be at the end of march. I have been drawing a salary for 2015/2016 tax year and haven't claimed my dividends yet, planning on doing so before the end of the tax year.

Will it be wise to declare an amount under the higher rate tax so that I dont push my self over the tax limit. I am guessing that my salary from the last month of the tax year at my permy job will push me over the higher rate tax limit which I figure is £43,001 right now?

1. This is the 2016-17 tax year - is that what you meant?
2. You've taken salary of 11k for this tax year, and zero dividends but 1 month of permie salary is going to push you over £43k for the year? Is that right? How much are they paying you

[LondonManc]

Suppose I should have mentioned the salary is the personal allowance currently + expenses so I should be able to take more than 5k

Expenses is nothing to do with salary.

[WordIsBond]

don't always care/understand what they say.

Never stops me from responding, either.

[MrMarkyMark]

Not cut out to be a contractor? Not brave enough to ask your accountant? If you can find him, maybe you can hire NLUK.

He'll gladly patronise you with platitudes about asking your accountant, reminding you that contractors don't have line managers and that you should abandon the public sector, all without actually reading your post.


In terms of what you've asked, if you're well below the £43k and will be come April, take the £5k.
I'd also speak to your accountant about the most efficient way of winding up your company, especially if you intend staying permie for at least two years.

The OP just went perm.

I doubt he can afford him .


HTH.

[skillmaster22]

1. This is the 2016-17 tax year - is that what you meant?
2. You've taken salary of 11k for this tax year, and zero dividends but 1 month of permie salary is going to push you over £43k for the year? Is that right? How much are they paying you

well if I planned to take my usual dividends which in addition to the 11k would total £43. What I was asking was should I factor for that one month of permy salary before I take my dividends and adjust to be safe.

[northernladuk]

The OP just went perm.

I doubt he can afford him .


HTH.

My advice is worth every penny the posters pay for it IMO.