Originally posted by zonkkk
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Extra Tax Money
Collapse
X
-
-
Comment
-
Originally posted by northernladuk View Post
I would have thought once you've attracted the attention of HMRC it won't be the first time? Better to stay off their books rather than use them for a cheap loan IMO.Comment
-
Originally posted by zonkkk View PostOr 32%, point taken.
Check again.
Is this why you can't afford to pay your tax, or a mortgage?See You Next TuesdayComment
-
Originally posted by Lance View Post
apparently the point wasn't taken.
Check again.
Is this why you can't afford to pay your tax, or a mortgage?
Secondly, dividend tax for higher rate tax payers is 32.5% and for additional tax payers 38.1%.
What point were you trying to make then?Comment
-
Originally posted by zonkkk View Post
Apparently you should get your facts straight. I can pay my tax and mortgage, thank you very much.
Secondly, dividend tax for higher rate tax payers is 32.5% and for additional tax payers 38.1%.
What point were you trying to make then?
And if you have to borrow money to pay your tax then you can't pay it. You are a different legal entity to your company. The fact that your company can afford to pay you a dividend is not the same as you being able to afford it.
You != Your LTD.See You Next TuesdayComment
-
What about a very trivial approach such as:
a) consumer loan - 3-5% pa, which you could repay after 6 April as soon as you withdraw dividends for 2021/22, or
b) even a cash withdrawal from any of your credit cards, which would work out as 3% initial charge + another 2% for March (based on 22% pa), or around 5% in total, which you would again repay immediately after 6 April. Even that in any case would be cheaper than paying 32.5-38.1% tax on dividendsComment
-
Originally posted by Lance View Post
No particular point other than you got the tax rate wrong. Again.
And if you have to borrow money to pay your tax then you can't pay it. You are a different legal entity to your company. The fact that your company can afford to pay you a dividend is not the same as you being able to afford it.
You != Your LTD.Comment
Topic is closed
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Top 10 items to recover VAT on as a limited company IT contractor Today 11:00
- What contractors need to know about trivial benefits Today 08:47
- Contractor guide to the VAT cash accounting scheme Yesterday 08:36
- Contractors' Questions: What is a Mini Umbrella Company? Apr 13 21:28
- Why our technical report on umbrella companies is a warning to contractors Apr 13 09:39
- Top 10 tips for choosing an umbrella company Apr 13 09:36
- Demand for IT contractors rocketed in March to 32-month high Apr 12 19:25
- ‘How Contracting Should Work’: MPs issued 12 recommendations on IR35 reform’s eve Apr 12 08:04
- Demand for IT contractors rocketed in March to 32-month high Apr 12 07:25
- Contractors’ Questions: What should a robust Status Determination Statement contain? Apr 9 17:57
Comment