Apologies if this has been asked countless times before (I'm sure it has) - feel free to point me to other relevant, up to date discussions.
I have had a few take home illustrations done by various accountants and they seem to vary in the balance of PAYE versus dividends they suggest I take. The illustrations that involve paying more PAYE than the minimum mean slightly less take home over the year (despite identical professional fees). I'm wondering why you would voluntarily opt to pay a little more in tax?
I can think of a couple of possible reasons:
- it affects your NIC in some way
- it reduces the likelihood of an HMRC investigation
Are either of these correct? Are you less likely to attract the attention of HMRC if you pay a bit more? Is there something I'm missing here?
Really appreciate any advice.
I have had a few take home illustrations done by various accountants and they seem to vary in the balance of PAYE versus dividends they suggest I take. The illustrations that involve paying more PAYE than the minimum mean slightly less take home over the year (despite identical professional fees). I'm wondering why you would voluntarily opt to pay a little more in tax?
I can think of a couple of possible reasons:
- it affects your NIC in some way
- it reduces the likelihood of an HMRC investigation
Are either of these correct? Are you less likely to attract the attention of HMRC if you pay a bit more? Is there something I'm missing here?
Really appreciate any advice.
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