Hi
I wonder if anyone could enlighten me on what this whole Section 447 is all about.
Someone mentioned it to me hence the question.
It sounded like paying yourself a low salary was not a good idea and that HMRC could pounce on you. Really?? On what basis??
To me it seems ridiculous coz as a Ltd co director I dnt see why i cant decide to pay myself whatever I choose be it minimum wage or millions ( not that I will ever earn millions )
Then the rest I can pay as dividends to myself as and when I need ( and if i need to invest in the co ...i.e train myself in something use that also ).
Tax avoidance was mentioned but even if i pay a low salary I could still pay a lil PAYE tax and NI and as it is i am CT on the dividends so what makes that so different to someone who says he earns 50K and gets taxed on that? e.g a permie employee?
I wonder if anyone could enlighten me on what this whole Section 447 is all about.
Someone mentioned it to me hence the question.
It sounded like paying yourself a low salary was not a good idea and that HMRC could pounce on you. Really?? On what basis??
To me it seems ridiculous coz as a Ltd co director I dnt see why i cant decide to pay myself whatever I choose be it minimum wage or millions ( not that I will ever earn millions )
Then the rest I can pay as dividends to myself as and when I need ( and if i need to invest in the co ...i.e train myself in something use that also ).
Tax avoidance was mentioned but even if i pay a low salary I could still pay a lil PAYE tax and NI and as it is i am CT on the dividends so what makes that so different to someone who says he earns 50K and gets taxed on that? e.g a permie employee?
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