Barclays have f*cked up...help required

[Craig@Clarity]

Thats not the issue, i acknowledge i should have checked my account and hold my hands up to that. When i went to see the accountant, i told him i wanted to minimize the tax i pay, he said i could pay myself 675 a month salary, 2500 a month dividend and claim legitimate expenses. Why would i question what an accountant says?

Out of interest, why £675 salary?

[JamJarST]

Out of interest, why £675 salary?

Cos his accountant told him!!!

[Ketchup]

Out of interest, why £675 salary?

He said something about paying some NI's

[FiveTimes]

Thats not the issue, i acknowledge i should have checked my account and hold my hands up to that. When i went to see the accountant, i told him i wanted to minimize the tax i pay, he said i could pay myself 675 a month salary, 2500 a month dividend and claim legitimate expenses. Why would i question what an accountant says?

But you can only draw the divs out of profit - how can you be guaranteed that there is always profit to be drawn against and have a set amount for the standing order ?

[Craig@Clarity]

Cos his accountant told him!!!

DOH!!!

[Sally@InTouch]

Not that i didnt check my accounts, that they advised me to take 2500 every month in dividends

Err, I know of one contractor accountant that does just this. A monthly payslip that details expenses, salary and divi's everything else out, same amount each time if the expenses are the same and sailing close to the wind of MSC possibly

[stek]

With all due respect: you need to DYOR if you're going to run your own business.

Except we don't really do we? We work as temporary workers surrounded by a sham of pretending to run a business for a variety of reasons, one cos Tory Gov made us (Agencies Act 197x?), and two, some people like the idea.

We are well paid temps forced to dance to the Ltd tune, if we were proper businesses at least one of us would be IBM or Oracle and only sasguru has reached that level.....

I know I'm gonna get if for this but how many of us think like 'real businesses'? Really - like marketing plans, sales projections, budget meetings, sales incentives? We are temps with knobs on. Me? I am Plan B'ing atm, that will be a 'real business' but this drifting from one role to the next.

[northernladuk]

Thats not the issue, i acknowledge i should have checked my account and hold my hands up to that. When i went to see the accountant, i told him i wanted to minimize the tax i pay, he said i could pay myself 675 a month salary, 2500 a month dividend and claim legitimate expenses. Why would i question what an accountant says?

He does your accounts, not runs your business. He gives you an option to consider..

Why not take out full dividends the first few months and stuff it in a high interest account and then withdraw from that when you hit the threshold. It's not earning anything in your business bank. You then can keep an eye on your account month by month so you can take max dividends. Once you have done that then you might consider not checking it too often.

[northernladuk]

Except we don't really do we? We work as temporary workers surrounded by a sham of pretending to run a business for a variety of reasons, one cos Tory Gov made us (Agencies Act 197x?), and two, some people like the idea.

We are well paid temps forced to dance to the Ltd tune, if we were proper businesses at least one of us would be IBM or Oracle and only sasguru has reached that level.....

I know I'm gonna get if for this but how many of us think like 'real businesses'? Really - like marketing plans, sales projections, budget meetings, sales incentives? We are temps with knobs on. Me? I am Plan B'ing atm, that will be a 'real business' but this drifting from one role to the next.

Indeed but there is a halfway house. Considering yourself as a business and using the correct terminology such as not using the word employer or getting the sack is essential. If you don't think like one you won't act like one. Not every business needs marketing plans, sales projections etc but they do need to you understand what you are and how you operate. A builder can be a business but doesn't need any of these things.

[jamesbrown]

Out of interest, why £675 salary?

What's 51 squids between friends?

Agree with the above about irregular and varying dividends, it's not a salary payment.