Cash after tax

[NewBoy]

I am nearing the end of my first year of contracting and have worked about 8 months of it and taken 4 months off in holidays...so all is going well.

I have earned £58,143 and am putting that through my limited company...I have also earned £188 in interest.

I am planning to take £5,035 as a salary and take the rest as a dividend...

I have calculated that this means I will pay £8,190 in Small Business Tax, £644 in Employers NI and £2,510 on Dividend Tax...leaving me with a grand total of £46,983

This is all assuming no expenses and very simplistic and straight forward accounts...I am trying to do this all myself and want to make sure that I start off getting the very basic amount right and starting with a worst case scenario...are these figures correct?

My contract was IR35 friendly.

CHeers guys...

[PAG]

So you don't have an accountant ??

[turbo]

Eeek... get an accountant

The money that you pay them will be far less than the fines imposed for getting your accounts wrong.

turbo

[jh0711]

possible risk - £5035 does not cover min wage for hours worked - not normally a problem if you are a director - but if HMRC look at your accounts and see £58k going in and a salary of £5k coming out they may decide to take a closer look.......

[Mustang]

Get an accountant. The simple parts are simple; the hard parts are hard (and costly if you get them wrong!).

[NewBoy]

Thanks all...I will get myself an accountant...good advice I'm sure...

Cheers

[Maxamus]

nil expenses ?

[NewBoy]

I will have some expenses but very few...my contract was overseas and pretty much everything was taken care of for me...and I'm no good at keeping receipts!!

[Jawz]

I'm with SJD & they seem pretty good, but yeah get an accountant.

[neon_trotsky]

http://www.direct.gov.uk/en/MoneyTax...nts/DG_4016453 - is this accurate in terms of the tax on dividends?

What about paying yourself a bonus, as well as a dividend? Would these be taxed favourably, or is this a no no?