What after 40K limit?

[prozak]

Taxless,

Yep. Hence her low share percentage. Obviously if we ever decided to take out more then i'd be hit by the higher tax and we would also be hit by student loan charges.

&

The contingency is non-contract periods. I'm not planning on ever taking a lump sum of contingency or retirment funds out of the company if I have to pay additional tax.

[Gaz_M]

Without getting into exact figuires on bandings, personal tax on dividends that fall into the higher rate tax bracket are taxed at 25%. You need to ensure that your total income for the tax year doesnt exceed £100k as you will start to lose your personal allowance, so your salary and part of the dividends will fall into the higher rate tax bracket.

So if we use the example of extracting the £50k surplus, this would cost £12,500 in personal tax, due 31st January after the tax year in which the dividends fall into.

I hope this helps.

Thanks
Neil

Don't you also have to pay the same again towards next years personal tax?
I.e. The above example would result in a £12.5k tax bill due 31st Jan after the tax year PLUS £6.25k on 31st Jan and £6.25k on 31st July towards next years tax bill.

That is where I got caught out a couple of years ago.

[Taxless]

Don't you also have to pay the same again towards next years personal tax?
I.e. The above example would result in a £12.5k tax bill due 31st Jan after the tax year PLUS £6.25k on 31st Jan and £6.25k on 31st July towards next years tax bill.

That is where I got caught out a couple of years ago.

In your example, yes you would, unless in the second year you were not going to take (higher rate) dividends, where you could apply to reduce the interim payments all the way down to Nil.

[Tanya@SC Lee Accountant Ltd]

They need to see your contract.
Most high street lender normally look at 3 months payslips and bank statements. It is the clue what some accountants help people to get a mortgage especially with the RIGHT contacts

Why not try Contractor Mortgages made Easy, they can lend on your day rate. PM me and I'll give you their details!!