and not everything you have invoiced for minus your Corp Tax and VAT?
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Whats the benefit of paying yourself small monthly wage
Collapse
X
-
-
If you pay all the company's potential profit out as salary you'll pay significantly more tax, than if you pay a small salary, and pay dividends on your company profit.
I still have new contractoritis even though I have been doing it now for three yearsLast edited by NotAllThere; 5 March 2008, 12:05. Reason: Can't believe the poster doesn't know this alreadyDown with racism. Long live miscegenation! -
Originally posted by NotAllThere View PostIf you pay all the company's potential profit out as salary you'll pay significantly more tax, than if you pay a small salary, and pay dividends on your company profit.
You've been contracting three years and you don't know this? What drugs are you on? (and where can I get them?)
Don't think I could survive on a small salary or wait till the end of the year to get my divi. I just pay an accountant to make sure I pay the right money when it's due.
No drugs just R E A L L Y!!! bad with moneyComment
-
You can pay a divvy monthly if you want. So long as it comes out of profit.
"There are no stupid questions. - But there are a lot of inquisitive idiots."Down with racism. Long live miscegenation!Comment
-
I have no idea how to run a business.... thats clearly obvious
I assume you can take the remaining money as a divy after corp tax? only that I'll be paying higher corp tax on this?Comment
-
Originally posted by NotAllThere View PostIf you pay all the company's potential profit out as salary you'll pay significantly more tax, than if you pay a small salary, and pay dividends on your company profit.
You've been contracting three years and you don't know this? What drugs are you on? (and where can I get them?)
Come on, after three years he doesn't know the basics and clearly has no idea how to run a busines so why should he get the tax breaks?
The correct answer, Roadster, is that you are doing exactly the right thing by taking all your income as salary. Well done.Blog? What blog...?Comment
-
Originally posted by malvolio View PostCome on, after three years he doesn't know the basics and clearly has no idea how to run a busines so why should he get the tax breaks?
The correct answer, Roadster, is that you are doing exactly the right thing by taking all your income as salary. Well done.
timComment
-
Originally posted by tim123 View PostExcept that when he is out of work, he'll have no money to live on, will expect the rock and roll and will be knocking on the door at the social asking them to give him some of my money.
timDown with racism. Long live miscegenation!Comment
-
I'll no be stuck.... Trust me
thats where Daddy will come in (even though I'm 33) being an only child has it's advantages even at this age.Comment
-
Originally posted by tim123 View PostExcept that when he is out of work, he'll have no money to live on, will expect the rock and roll and will be knocking on the door at the social asking them to give him some of my money.
tim
the day I ever have to do that is the day it's all over. Anyway I'm hoping to be dead by 60 as I've no pension to speak of either (well I do but my Dad's still living in it )Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment