How Do you have your Ltd Co. Setup?

[Bluebird]

The other thing to do is pay dividend to more that one person [ ie spouse ] then you each have upto [ I think it's 34k per year ] before you get taxed.

Don't forget that the threashold [ 34k I think ] will also include salary, so if you pay yourself £1k per month [ i.e. £12 per year ] then the amount you can get as divvy is £22k [ or about £1.9k per month ]

[Bigbird]

Erm Bluebird have you ever heard of Arctic Systems? Suggest you google it if not, paying either a wage or a dividend to a spouse could land you in big trouble with HMRC unless you can show that they actually contribute work to the company (wage only, divi is much more complicated).

Your next bit is half-right. Divis and earnings are unlimited, but above the personal tax threshold limits wages are taxed at 40% and divis at 32.5%. Taxed at source under PAYE you pay 40%. Divis over the threshold carry a 10% tax credit so you will need to pay a further 22.5% of the divi amount above the threshold when you submit your personal return.

How you structure you co and what expenses you are able to claim can make a big difference to where your own "personal" threshold limit is

[Maxamus]

thanks for the info guys. Very helpful!

Is rent for business premises (office) an allowable expense or does that come out of my own pocket?

[Ardesco]

Don't do it if the office is in your own house. The IR could successfully argue that the company owns a percentage o your house which can have far reaching implications....

[Maxamus]

Don't do it if the office is in your own house. The IR could successfully argue that the company owns a percentage o your house which can have far reaching implications....

Well im running the office from home but the house isnt mine, its my mothers.

[ASB]

Don't do it if the office is in your own house. The IR could successfully argue that the company owns a percentage o your house which can have far reaching implications....

The issue isn't ownership. Unlikely the IR would win that argument IMO. However they could (and I believe have) argued against the PPR exemption on sale. So hello loads of CGT. Possible less of an issue if the company rents a second property from the individual.

[ASB]

Well im running the office from home but the house isnt mine, its my mothers.

I assume the rent is all invoiced etc so you have the audit trail.

Imaginatively I expect the rent will be £4244.99 per annum so your mother does not need to declare it. Unfortunately that is probably ineffective http://www.hmrc.gov.uk/individuals/t...m-scheme.shtml

Of course if she just happens to let them to you as furnished rooms and you just happen to to do your admin from there you might be OK - but your moether is at risk.

[Maxamus]

Now that is interesting.
So you can claim some amounts back for land line costs, elec/heating (aslong as they are accounted for through reciepts etc) but nothing on rent even if that is accounted for. Seems messed up to me.

[Maxamus]

I assume the rent is all invoiced etc so you have the audit trail.

Imaginatively I expect the rent will be £4244.99 per annum so your mother does not need to declare it. Unfortunately that is probably ineffective http://www.hmrc.gov.uk/individuals/t...m-scheme.shtml

Of course if she just happens to let them to you as furnished rooms and you just happen to to do your admin from there you might be OK - but your moether is at risk.

nah rent will be £30 per week which is £1,440 per annum. Not really worth bothering with but it is an expense.

[Pondlife]

nah rent will be £30 per week which is £1,440 per annum. Not really worth bothering with but it is an expense.

Expenses must be occured wholly by the business. So claiming that the desk in your bedroom is an office is not going to work.