Originally posted by SeanT
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Childcare - paying when not getting salary
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Originally posted by TheCyclingProgrammer View PostWhy wouldn't OP be entitled to the full £243/month as director of their company?Rhyddid i lofnod psychocandy!!!!Comment
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Originally posted by TheCyclingProgrammer View PostWhy wouldn't OP be entitled to the full £243/month as director of their company?
Please note:
If an employees amount is above the tax free limit; the remaining amount should be taken from the employee's net salary.
(The normal maximum tax free limits are:
£243 monthly, £220 4 weekly, £110 2 weekly, and £55 weekly for standard rate tax payers
£124 monthly, £112 4 weekly, £56 2 weekly, and £28 weekly for higher rate tax payers
£110 monthly, £100 4 weekly, £50 2 weekly, and £25 weekly for additional rate tax payers)
My assertion was based on him now being a contractor through a brolly.Comment
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Originally posted by psychocandy View PostAll well and good to ask accountant. BUT, as we keep harping on its your company and its always best to understand the rules yourself as well.Comment
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Originally posted by SeanT View PostHe can pay himself ten grand a month in CCVs if he likes, but the amount that is tax free and not a BIK depends on his highest rate of income tax:
Please note:
If an employees amount is above the tax free limit; the remaining amount should be taken from the employee's net salary.
(The normal maximum tax free limits are:
£243 monthly, £220 4 weekly, £110 2 weekly, and £55 weekly for standard rate tax payers
£124 monthly, £112 4 weekly, £56 2 weekly, and £28 weekly for higher rate tax payers
£110 monthly, £100 4 weekly, £50 2 weekly, and £25 weekly for additional rate tax payers)
My assertion was based on him now being a contractor through a brolly.Rhyddid i lofnod psychocandy!!!!Comment
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Originally posted by psychocandy View PostYep know the totals. But do you need to employee and not just director? Or can you still be employee and not getting paid a salary?Comment
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The rules do state that you need to be an employee of the company, in order for childcare costs to be paid through the business.
However it does not specify a minimum salary that needs to be paid.
If you are married and your spouse is not using up all of her personal allowances, you could look at giving them a small salary through the company and therefore still being able to claim for childcare costs.
We're all ears!Comment
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So much advice is given around if you're married and your other half doesn't work, whereas I had to do my own calculations to optimise stuff for a partner who already has a "normal job" Someone did post a calculator that took it into account the other day, but it was a couple of years out of date.Last edited by SeanT; 12 May 2017, 12:09.Comment
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Originally posted by psychocandy View PostAll well and good to ask accountant. BUT, as we keep harping on its your company and its always best to understand the rules yourself as well.Comment
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Originally posted by TheCyclingProgrammer View PostI do know how the rules around childcare payments work. If OP is still a director of his company, I'm asking why couldn't he receive childcare payments? AFAIK there isn't a minimum salary requirement.Comment
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