Originally posted by glashIFA@Paramount
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What's the minimum salary I can pay myself?
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How fortunate for governments that the people they administer don't think -
Originally posted by TrollWhat's your take on contracting out of SERPS?
Pension companies will advise you stay in as you are likely to get more money as things stand. The only question is do you trust the government to not change the rules ?!Comment
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Originally posted by LewisYou mean S2P
Pension companies will advise you stay in as you are likely to get more money as things stand. The only question is do you trust the government to not change the rules ?!
and no I do not trust the government - that is the problemHow fortunate for governments that the people they administer don't thinkComment
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Originally posted by TrollWhat's your take on contracting out of SERPS?Comment
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By the way you can take the best part of the next year to read up and decide. As you can backdate a rebate to the start of the tax year.Comment
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I'm glad this thread is here, I was going to start something similar.
I'm currently having the same issue with my accountant. He has recommended that I pay myself 10,500 a year which keeps me above minimum wage. That's a monthly payment of 750.
That was all fine with me until I just got my PAYE bill for the quarter of around 300. So I lose 1200 a year by paying minimum wage, when I could have paid myself less and incurred no taxes at all.
I asked him why - he said to keep HRMC happy. What I don't really get is I would be doing nothing legally wrong by paying myself less, so why should HRMC not be happy? How could it affect me?Comment
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Originally posted by GrosI'm glad this thread is here, I was going to start something similar.
I'm currently having the same issue with my accountant. He has recommended that I pay myself 10,500 a year which keeps me above minimum wage. That's a monthly payment of 750.
That was all fine with me until I just got my PAYE bill for the quarter of around 300. So I lose 1200 a year by paying minimum wage, when I could have paid myself less and incurred no taxes at all.
I asked him why - he said to keep HRMC happy. What I don't really get is I would be doing nothing legally wrong by paying myself less, so why should HRMC not be happy? How could it affect me?
But it was hotly debated some saying this is rubbish others saying not. QDOS requires a salary of around £10K to have their IR35 tax loss insurance, this is because they consider there to be more risk of investigation if you are paid less. As I have this insurance I have no choice.
It's another one of those "you must decided for yourself" ones I'm afraid.Comment
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IIRC it's all about dividends being profit shares and not needed to live on.
If the HMRC suspect you are using your dividends to live on (pay bills, buy food etc) on a regular basis, they will then investigate you with a view to sending you a nice PAYE bill for what you took as dividends that they think you should have taken as salary.Comment
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Originally posted by beermeisterI am director of limited company and am currently contracting.
What's the minimum amount I can pay myself in salary? I guess £5100 if I want to stay in State Pension, but suppose I'm not interested in this?
This thread is very useful (and entertaining in places!)
http://forums.contractoruk.com/thread15020.htmlComment
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Originally posted by BurdockThis thread is very useful (and entertaining in places!)
http://forums.contractoruk.com/thread15020.html
I have now decided that, considering:
a) I am new to contracting (ie, I don't have many years of money to care about)
b) My contracts are said to be outside IR35 and mostly short term (1-3 months)
c) Even if I was investigated, I wouldn't have all that much to lose
...that I will ignore my accountants advice and go with the minimum salary option.
What is that now, £100 per week? It seemed to have changed over the course of that thread.Comment
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