Best Way To Get The Cash Out

[lukemg]

All, sorry to sound like a newbie but I need some advice.
Recently switched to a LTD co when a new contract started. As usual 3 monther has been extended and may be again. If this goes on for the year I am looking at over 100k. This is outside IR35.
What are my best options for getting all the cash out ? Many years ago in a previous contracting spell, relative had 40% of shares and was paid divi's accordingly and since I wasn't earning massive, this worked well for getting all the money out. This doesn't look good anymore, even if Arctic won.
Will be paying close to minimum wage and using up allowances, what are my options for everything in excess of 40k:
What I can think of is:
- Expenses come off the top, mileage is useful for getting cash out.
- Company pension might be useful.
So:
1. Can someone explain taper relief to me, does this mean I leave the cash in the company and remove sometime in the future when I close it up ?
2. If I take all the cash out during the year, does that eventually hit me when I do the self assessment form and declare it, at which point they ask for 40% of it ?

I don't need the all the cash during the year if there are other options for getting it out which mean I can keep more.
Thanks in advance.

[Sockpuppet]

Taper reliew has been talked about.

Basically you wait 2 years fold the company then get tax relief on capital gains.

Accounts are probably the best call for this.

[mjshrimpton]

2. If I take all the cash out during the year, does that eventually hit me when I do the self assessment form and declare it, at which point they ask for 40% of it ?

You pay 25% of the gross divis (22.5% of net) above the HRT, not 40%. They come with a tax credit of 10% and have had Corp tax paid on them, so are not taxed at the same level.

So £10k over Higher rate threshold for income tax, means £2500 extra tax under SA, plus £1250 payment on account in Jan, and same again in July as assumption is you will earn the same next year.

Could take a directors loan of somewhere near £5000, which must be repaid by time accounts are due - 9 months after year end, which might help you stay under HR tax and allow you to build reserves.

Searching will help......