Hi all....just after a few opinions.
got a bit of a build up of cash in comapny coffers sitting there earning a wopping 0.2% interest and was wondering whether it is actually better for me to take a chunk as divis and pay tax on it OR to leave it in there and wait till I end up bailing out of contracting ( or bailing out of the UK !!) and getting whats left at 10% on company closure.
The pros of doing this is that I'd be paying about 12% less tax on it.....however I am still tempted for the following reasons...
1) I can get a higher rate of interest if I draw it (e.g. mortgage is fixed at 4.99%) - which covers the extra 12% in a couple of years
2) Lord knows what the tax rules are going to be in a year or two time
3) Abbey banking may go pop and take my company cash with it
Are there any other sensible reasons for taking or leaving cash in the coffers
Cheers!!
got a bit of a build up of cash in comapny coffers sitting there earning a wopping 0.2% interest and was wondering whether it is actually better for me to take a chunk as divis and pay tax on it OR to leave it in there and wait till I end up bailing out of contracting ( or bailing out of the UK !!) and getting whats left at 10% on company closure.
The pros of doing this is that I'd be paying about 12% less tax on it.....however I am still tempted for the following reasons...
1) I can get a higher rate of interest if I draw it (e.g. mortgage is fixed at 4.99%) - which covers the extra 12% in a couple of years
2) Lord knows what the tax rules are going to be in a year or two time
3) Abbey banking may go pop and take my company cash with it
Are there any other sensible reasons for taking or leaving cash in the coffers
Cheers!!
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