Ltd company ... things needed??

[lambrini_socialist]

I don't know. You might like to ask the question to the approximately 80% of the population with household incomes < 40k gross. (avg 30k net).

hey don't get me wrong, i suffer from directionless, half-arsed liberal guilt as much as the next north london guardianista. but a 5 quid per month Amnesty International membership and regular top-ups of chateauneuf-du-pape stops the voices from getting too loud. sorted!

[lambrini_socialist]

this is the thing i don't understand - are all you MyCo owners only taking out enough cash to keep you just below the higher rate of tax? if so, how do you afford to live? i realise you can push some money into expenses, pensions, capital purchases etc, but still, only taking home <£40k doesn't make sense to me. (my first LtdCo invoice is about to pay so this stuff is on my mind a lot at the moment....)

back to my question....

[skelm]

Live a less glamorous lifestyle?

Im guessing your biggest expense should be the four walls you live within??

How much do you reckon you need/month to be comfy?

[ASB]

hey don't get me wrong, i suffer from directionless, half-arsed liberal guilt as much as the next north london guardianista. but a 5 quid per month Amnesty International membership and regular top-ups of chateauneuf-du-pape stops the voices from getting too loud. sorted!

It was a somewhat tongue in cheek comment but probably appropriate for your ID. I don't have a mortgage, don't holiday much, couple of kids not in private education, run a best part of 10 year old car and burn considerably more than that. It sure as hell beats me how most people manage on the income they have.

[NickNick]

back to my question....

Looks like you'll need a higher take home than that if you are going to have to pay Nelson for the image, unless you are Nelson in which case you can take home much less and live off your other sources of income. ;o)

NN

[lambrini_socialist]

i'm still none the wiser. what the hell are you people doing with your money if you're not higher-rate taxpayers?

[Lewis]

i'm still none the wiser. what the hell are you people doing with your money if you're not higher-rate taxpayers?

If you are married and your wide doesn't work. She can be a shareholder in your company which allows an extra ~£40K take home.

[skelm]

If you are married and your wide doesn't work. She can be a shareholder in your company which allows an extra ~£40K take home.

WHS.

[lambrini_socialist]

If you are married and your wife doesn't work. She can be a shareholder in your company which allows an extra ~£40K take home.

now THAT's the kind of information i was after. presumably i can just sell her (for example) a 20% stake for a nominal fee, and then whenever i declare a dividend i have to give her 20%?

is this what people mean by "income shifting"? should i bother doing it or does it open up a whole new world of hassle?

[skelm]

You can pay her the tax free allowance 5K odd( salary ) and whatever share she has say 20% you pay that percentage of dividends distributed to her ( to her account! )

So in theory you could double your threshold

Varying theories some say income shifting some say not ... i say you dont buy a lottery ticket you dont win.

Far more experienced posters here but this is just my take on it( what I do )

HTH