how to pay higher rate tax

[chris79]

well, that's interesting however I only pay myself £1k/month gross in salary and only 6 months gone. If I don't work for next 6 months can I get away with stopping the salary, meaning I only paid myself 6k gross salary but the dividends make me into a higher rate (>40k)

Just pay yourself £1 a week/month until the end of March?.. As a company director you are not bound by the NMW (as far as I know)... that would keep your PAYE at 6k which is enough to stamp your NI for the year, pay the bare minimum in tax/NI, and any additional funds would be taken as a dividend..

Not sure why you would want to be paying yourself £1k/month salary anyway, I thought ~£6500/year was the ideal amount if you take the rest as a dividend?

[centurian]

or should I do it now whilst I'm paying myself a lot out of company as I don't want them to turn down my remortgage application if I've not been working for a while

I agree that's a worry. Banks can sniff out a hint of desparation and as a lot of people have found out the in past 12 months, you can get all the credit you llike - just as long as you don't need it.

The moment you actually need to borrow some money - forget it.

I suppose what you should have done is paid the taxman what was due and taken out a higher mortgage in the first place, so maybe you should correct the fault now - basically unwinding part of your property purchase by remortgaging.

I guess it all depends how confident you are about remaining in work for the rest of the year. Bear in mind that any money you do earn will just go towards paying the "debt" you have effectively built up.

Having no war chest also makes it hard in negotiations. You can't afford to turn down a mediocre offer and if agents get a sniff of that, they will revise any offer downwards and pocket the difference.

Good luck and next time, do the bloody calculations right

[contractor79]

so I remortgage worth 24k i.e. the potential tax bill in 2011
Pay this back slowly, in my own time.
Won't sell my car I love it too much, gives me prestige, impresses the birds.
cheers

[TykeMerc]

so I remortgage worth 24k i.e. the potential tax bill in 2011
Pay this back slowly, in my own time.
Won't sell my car I love it too much, gives me prestige, impresses the birds.
cheers

So you value "prestige" over financial common sense? You're in trouble over paying your tax bills, but prefer to keep an expensive toy that costs a lot of money in upkeep.
I utterly fail to comprehend your thinking, you're either horrifically foolish or a troll.

[contractor79]

So you value "prestige" over financial common sense? You're in trouble over paying your tax bills, but prefer to keep an expensive toy that costs a lot of money in upkeep.
I utterly fail to comprehend your thinking, you're either horrifically foolish or a troll.

well, yes, I do value appearance and prestige. No one knows you from your personal documents or bank balance. Why keep them neat and tidy yet drive a banger? People may think u r a loser. No use keeping secret fortunes. People know you from your car, your clothes which directly affect the quality of women you attract.

I'm not foolish, I bought the property with cash. Only to realise that I have this liability coming up. Maybe need to release equity somehow, has anyone done this?

[chris79]

well, yes, I do value appearance and prestige. No one knows you from your personal documents or bank balance. Why keep them neat and tidy yet drive a banger? People may think u r a loser. No use keeping secret fortunes. People know you from your car, your clothes which directly affect the quality of women you attract.

It's up to you what you do with your money I guess, if what other people think of you is important, then you've done the right thing.. there's also a group of people who think that materialistic people who buy flash cars with money they don't actually have because they can't attract a real woman fit into the loser category too. Not saying that's you, but certainly my idea of a stereotypical new person to money fits that category.

Would love to know the car you drive, I'm guessing it's amazing?

[AZZIK]

So you value "prestige" over financial common sense? You're in trouble over paying your tax bills, but prefer to keep an expensive toy that costs a lot of money in upkeep.
I utterly fail to comprehend your thinking, you're either horrifically foolish or a troll.

WHS x 2

[contractor79]

Would love to know the car you drive, I'm guessing it's amazing?

It's nice I wouldn't say amazing

New cars that are £19-21k, buy them after 1 year with low mileage you can get them for 12-14k then keep and have fun

[centurian]

well, yes, I do value appearance and prestige. No one knows you from your personal documents or bank balance. Why keep them neat and tidy yet drive a banger? People may think u r a loser. No use keeping secret fortunes. People know you from your car, your clothes which directly affect the quality of women you attract.

I'm not foolish, I bought the property with cash. Only to realise that I have this liability coming up. Maybe need to release equity somehow, has anyone done this?

Each to their own. Personally I make a particular point of buying bangers and am quite proud of that fact. Those that know me don't think I'm a loser - as for everyone else - I couldn't give a flying tulip what they think. I guess it's easier for me to say with a settled lifestyle etc.

I've seen lots of guys with their flash cars and must confess to taking some delight in pointing out to them on Tuesday afternoons (or Wednesdays if the car is really expensive) - that so far this week they have been working to pay their "car rental"

[TykeMerc]

It's a troll and very likely a sad sockpuppet, nobody with a functional braincell can behave like this (see the credit card thread in conjunction with this one) so it's not even a credible sockie.

Let it die in peace unless the Administrator spots this particularly ludicrous example and executes it.