A years income in June

**ASB** · 9 February 2006, 17:02

I'm pretty sure it's not pro rata. If you are not ordinarily resident here you might want to investigate paying after you have left. In any event you might want to investigate the CGT regime that capital payments would be under.

**Bradley** · 9 February 2006, 17:04

Originally posted by suchabigask

I have been contracting here for a few years and getting set to shoot back down under.

If I head off in May, can I get my £18k retained earnings out as a dividend and not incur the top up tax? Thats a stupid question - what I mean is are the taxable bands pro rated based on how much of the tax year I was in the country, or do I get access to the whole personal allowance + the next £30k odd at the basic rate?

Cheers to you all

Depends on how they'll treat it in Oz - it could be a salary or a dividend or a capital gain depending on how you proceed with the winding up.

**malvolio** · 9 February 2006, 17:37

The tax bands are not pro rata. In effect each month (or quarter or whatever)you take what you have earned since the start of the tax year, calculate the total tax due, subtract the tax paid last time you did it and send off the cheque. So if you stop earning after three months, that what you get taxed on.

**suchabigask** · 15 February 2006, 16:05

Nice one - that all sounds good. Now I have just realised I got £2k out as a Directors loan 5 months ago - do I need to pay that back (and then pay it out to myself again as a divi) or just forgo it as a bad debt on dissolving the company.

I have spoken about this with the Director, and shareholder, (both me) and am happy to live with dissolving the company without calling that debt in.

Is that taking the piss?

**MrsGoof** · 15 February 2006, 16:09

I have no Idea but find the Idea really funny

**Mordac** · 15 February 2006, 16:56

Originally posted by suchabigask

Nice one - that all sounds good. Now I have just realised I got £2k out as a Directors loan 5 months ago - do I need to pay that back (and then pay it out to myself again as a divi) or just forgo it as a bad debt on dissolving the company.

I have spoken about this with the Director, and shareholder, (both me) and am happy to live with dissolving the company without calling that debt in.

Is that taking the piss?

I doubt the IR will let you close the company down on that basis. You really need to speak to your accountant.

**ASB** · 15 February 2006, 19:45

I have spoken about this with the Director, and shareholder, (both me) and am happy to live with dissolving the company without calling that debt in.

As has been mentioned talk to your accountants but...

You will probably find what you propose is in fact absolutely fine. Your accountants will then explain why it's tax neutral either way.

**Mailman** · 15 February 2006, 20:46

Mate...if you are leaving blighty for ever just take the money and run!

By the time IR realise you have done a runner you will be laid up in an old folks home in ganawamba!

Mailman

A years income in June