LTD companys

[delboy]

Thankyou VectraMan

Greatly Appreciated

[ASB]

Thankyou VectraMan

Greatly Appreciated

If you are within IR35 then it will make little difference, outside IR35 to miinimise you taxation as far as possible:-

Pay yourself a salary of 5035. This will cost you zero in tax an NI. [Don't bother paying yourself the 2150 10% band because the NI suffered will be more than the CT paid as a reslt of this becoming proift.

The balance (after any other expenses) will be your profit. This is taxed at 19%.

You can then pay yourself a further 29970 (33300 including the tax credit). In dividend. This will attract no further tax. Obviously this you assumes you have no further income.

Next you need to decide what to do with any remaining funds. If you pay them as a dvidend then further tax is dues (22.5% if I recall). you could make company contributions into a pension [which will reduce the tax payable since they are a chargeable expense]. Or you could simply leave them in the company.

When the company has about 40k wind it up. Provided it has been > 2 years you get 75% taper relief so this comes down to 10k, which is broadly the CGT thresholds. Obviously this assumes that there is no other chargeable gains.

If you are planning to emigrate then you don't suffer the CG issue, so you could amass a small fortune and retire to the sun. Obviously you need to be resident somewhere in a lax CGT regime when you make the capital distributions. Watch out for CGT clawback if you come back to the UK withn 5 years.

If you are 50 or over you might want to consider making as large a pension contribution as possible and the immediately converting it into a pension (immediate vesting). This can be appropriate for some.

Overall you situation is specific to you, and thus your best solution will also be unique to you. The above might give you some pointers as to how to plan.

Doing a search will rapidly yield this and other possible solutions.

[delboy]

Thanks ASB quite alot of info there..
I had another question what if one was to setup an offshore company 1) Would the UK clients / Agencys pay into that offshore account and 2) Would I get away with paying less tax?

[Angela_D]

"Thanks for that advice Angela_D. I have taught myself english in 6 months. I think I have done quite well. Why dont you try and learn another language in the same time-scale and get back to me!"

I have learnt other languages. Given your use of the vernacular I suspect porkies here. I think you are being disingenuous.

Tell us more and give us your NI number.

Now you're saying that you've immigrated from somewhere into Britain without English and now you want to take work and illegally avoid taxation. And on top, you expect free advice from Brits on how to do that !

Pay your due taxes or piss off.

Pillock.

[ASB]

Thanks ASB quite alot of info there..
I had another question what if one was to setup an offshore company 1) Would the UK clients / Agencys pay into that offshore account and 2) Would I get away with paying less tax?

1) Probably not. But you could incorporate one company offshore, which you are employed by. Then a second in the UK. The UK company invoice the agent. The offshore company invoices the UK. You must not be a director of the UK co or "have the power of a director" (this is difficult to avoid of course). Your exact circumstances will detail whether this can be effective. It depends on your domicile, whether you are ordinarily resident and some other things. It is sailing very close to the wind but in some limited cases may yield benefits.

2) See 1. But you will need very good professional advice. It is expensive. It is also worth buying a couple of books on offshore tax planninng. They are expensive and the rules continually change. You get it wrong and the penalties are severe if caught (and you normally are). You could even be looking at jail time.

The easiest way to pay no tax is simply to not hand it over and hope to do a bunk before anybody catches up with you. Not a sound strategy.

[delboy]

"Thanks for that advice Angela_D. I have taught myself english in 6 months. I think I have done quite well. Why dont you try and learn another language in the same time-scale and get back to me!"

I have learnt other languages. Given your use of the vernacular I suspect porkies here. I think you are being disingenuous.

Tell us more and give us your NI number.

Now you're saying that you've immigrated from somewhere into Britain without English and now you want to take work and illegally avoid taxation. And on top, you expect free advice from Brits on how to do that !

Pay your due taxes or piss off.

Pillock.

Angela_D You can suspect whatever you wish. Who the hell do you think you are? Wanting my NI number. NO one asked you to reply to my thread especially when you had no positive advice to give on my query. It clearly appears to me that you've swallowed a thesaurus instead of taking the pills your psychiatrist has prescribed you. Please don't take offence but we are all here to help each other but you have instigated bad feeling by your very first nonsensical reply - advising me I need to take adult literacy, the nerve !! Anyway I would appreciate it if you would keep your abusive comments to yourself in future.


---
@ ASB, zeitghost, Thanks again for the input guys its appreciated

[cojak]

Ooh, very la-di-dah when pushed, aren't we?

Pay your dues or piss off - it makes no odds to us if you go down...

[delboy]

Ooh, very la-di-dah when pushed, aren't we?

Pay your dues or piss off - it makes no odds to us if you go down...

Piss off yourself pal same goes to the original loud mouth.. Its no ones business but mine how I conduct my business. I simply came on here to ask some advice and a big thankyou to ASB one of the more decent members .. I will repeat (to the members who have a problem understanding) if no one has any advice to give then keep your petty comments to yourself please.

[Angela_D]

So you still didn't tell us your story ? Where did you come from to learn English in 6 months?



Which is utter bull from yourself by the way. You sound more like White Van Man.


Here's a free one for you to peruse: http://www.hmrc.gov.uk

A.

[delboy]

So you still didn't tell us your story ? Where did you come from to learn English in 6 months?



Which is utter bull from yourself by the way. You sound more like White Van Man.


Here's a free one for you to peruse: http://www.hmrc.gov.uk

A.

I see you had trouble comprehending my last reply to you. Obviously you seem unable to refrain yourself from making petty comments. Anyway I suggest you take up another hobby imstead of replying snidely to these threads - thats not their purpose !