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I have been a contractor for many years now. Worked for a while through my own limited company and then went off to work through an Offshore company scheme, which is now being wound down due to the new MSC legislation.
I have been speaking to a few accountants to get a feel for what way of working would work best and thats left me a bit confused.
1. Low salary, high dividend (to top rate of tax). Leave the rest in the company. Shut down the company in 3 years, and take the retained earnings as a capital redistribution with taper relief applied. potential to take home around 75%. Downside - I need to take home more than the 35k odd that I;d be able to this way.
2. Low salary and dividends to leave little or no retained earnings in the company. I get control of the money immediately but pay tax instead. net take home would be around 65-68%.
3. Opting for a system halfway between 1 & 2 looks like the only feasible option, unless I am missing someone.
Any opinions? Any recommendations on good accountants?
Amol
PS - My contract is outside IR35.
I have been a contractor for many years now. Worked for a while through my own limited company and then went off to work through an Offshore company scheme, which is now being wound down due to the new MSC legislation.
I have been speaking to a few accountants to get a feel for what way of working would work best and thats left me a bit confused.
1. Low salary, high dividend (to top rate of tax). Leave the rest in the company. Shut down the company in 3 years, and take the retained earnings as a capital redistribution with taper relief applied. potential to take home around 75%. Downside - I need to take home more than the 35k odd that I;d be able to this way.
2. Low salary and dividends to leave little or no retained earnings in the company. I get control of the money immediately but pay tax instead. net take home would be around 65-68%.
3. Opting for a system halfway between 1 & 2 looks like the only feasible option, unless I am missing someone.
Any opinions? Any recommendations on good accountants?
Amol
PS - My contract is outside IR35.
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