Drawing dividends over higher tax threshold - should I?

[psychocandy]

Sorry for quoting your example TF but to you guys investing in these you are taxed on the interest and then taxed when you divi it out to yourself yes? so doesn't leave much on a few percent unless you have a lot in the co? Am still crossing my fingers someone will come up with something worthwhile no one has spotted yet.

Hmmm. good point. Doesnt leave a lot....

[TheFaQQer]

Sorry for quoting your example TF but to you guys investing in these you are taxed on the interest and then taxed when you divi it out to yourself yes? so doesn't leave much on a few percent unless you have a lot in the co? Am still crossing my fingers someone will come up with something worthwhile no one has spotted yet.

As a clarification, I was merely answering the question - I don't invest in any of them. I don't take dividends that would put me over the 40% threshold either.

[northernladuk]

As a clarification, I was merely answering the question - I don't invest in any of them. I don't take dividends that would put me over the 40% threshold either.

Yeah I understand. Wasn't picking on your post in general, just it was the cleanest one to link to. Was a question to all discussing these types of accounts. I guess even taxed it is still profit over and above what you would get sitting there at 0.5% or whatever, particularly if you have a tidy sum.

[smalldog]

As a clarification, I was merely answering the question - I don't invest in any of them. I don't take dividends that would put me over the 40% threshold either.

Im always staggered when I hear people surviving under the 40% tax threshold, you living in a cave and driving an old skoda or something?? How on earth......

[northernladuk]

Im always staggered when I hear people surviving under the 40% tax threshold, you living in a cave and driving an old skoda or something?? How on earth......

Have you done the sums? It is hardly being on the breadline particularly if you partner works or is a shareholder as well.

[rd409]

Im always staggered when I hear people surviving under the 40% tax threshold, you living in a cave and driving an old skoda or something?? How on earth......

Income under 40% tax threshold is quite a lot to be honest. Even if you are the single shareholder it equates to something around 3500 a month plus expenses. That kind of income is definitely livable even in London imho.

There are plenty of people living more than happily on that kind of salary and even paying tax and NI on top of it.

[kingcook]

Im always staggered when I hear people surviving under the 40% tax threshold, you living in a cave and driving an old skoda or something?? How on earth......

Nope. I live up north. Where they don't charge to drive on roads, and i can buy a 4 bed detached house on a nice estate for £250,000.

Down south, you'd only get a bedsit for that!

[psychocandy]

Nope. I live up north. Where they don't charge to drive on roads, and i can buy a 4 bed detached house on a nice estate for £250,000.

Down south, you'd only get a bedsit for that!

Cheaper than that in Wales....

[TheFaQQer]

Im always staggered when I hear people surviving under the 40% tax threshold, you living in a cave and driving an old skoda or something?? How on earth......

Have you done the sums? It is hardly being on the breadline particularly if you partner works or is a shareholder as well.

WHS - although my wife isn't a shareholder or a worker.

[smalldog]

Income under 40% tax threshold is quite a lot to be honest. Even if you are the single shareholder it equates to something around 3500 a month plus expenses. That kind of income is definitely livable even in London imho.

There are plenty of people living more than happily on that kind of salary and even paying tax and NI on top of it.

Granted you can Im sure but does depend on your lifestyle choice and commitments. I can see that is more doable if you have a teeny tiny mortgage.

Im seriously impressed if you can live off that in a year taking into account things like mortgages, cars, holidays, kids or maintenance, home improvements and unexpected things like stuff breaking...oh and of course Hector asking you to make SA payments on accounts every 6 months, granted lot less if your under the 40% threshold. Guess I just need to try and clear my debts quicker so I can at least try and get under it at some point in my life...