Hi All,
I'm new here so go easy please. I have read many, many posts on here but my head is hurting from trying to work it out so I figured I'd register and see if someone can explain it.
I am working as a contractor and it seems that Limited Co is the way to go. My IR35 situation is grey (probably gonna get SJD to check out my contract) but lets proceed on the basis of outwith IR35.
My gross earnings are a modest 30K a year.
My legit expenses are likely to be between 3 to 4K per year.
I beleive that if I pay myself a salary of about 10K then I'll pay about £1,400 in tax & NI on that.
Does that mean that the balance from 30K gross - (10K salary & 4K expenses) of 16K would be liable for Corporate Tax at 22%.
Also, how does the 10% Tax credit on Divs come into this.
Would anyone be kind enough to show me how to calculate how much I would receive after tax if I was to pay out the remaining 16K in divs?
Many Thanks
Al
I'm new here so go easy please. I have read many, many posts on here but my head is hurting from trying to work it out so I figured I'd register and see if someone can explain it.
I am working as a contractor and it seems that Limited Co is the way to go. My IR35 situation is grey (probably gonna get SJD to check out my contract) but lets proceed on the basis of outwith IR35.
My gross earnings are a modest 30K a year.
My legit expenses are likely to be between 3 to 4K per year.
I beleive that if I pay myself a salary of about 10K then I'll pay about £1,400 in tax & NI on that.
Does that mean that the balance from 30K gross - (10K salary & 4K expenses) of 16K would be liable for Corporate Tax at 22%.
Also, how does the 10% Tax credit on Divs come into this.
Would anyone be kind enough to show me how to calculate how much I would receive after tax if I was to pay out the remaining 16K in divs?
Many Thanks
Al
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