Hello there!
Background:
I am a contractor operating through my own limited company.
In the past three years, I gave myself the following income (through salary + dividends):
2012-13 ~£100k (~13k SA tax due)
2011-12 ~£42k (~£0 SA tax due)
2010-11 ~£44k (~£0 SA tax due)
The reason I only took out £44k and £42k was because at the time I didn't need any more money personally, not realising the implication of the £100k threshold (losing the allowance at a 2:1 ratio). Now I'm faced with wanting to withdraw the savings I allowed to accumulate in the company, but for every £1 over £100k I withdraw, I end up paying almost 50p in tax.
Is there any way to go back to 2010/2011 and declare a greater dividend? This would require new company accounts and new SA returns, probably annoying a lot of people in the process, in particular HMRC, but also companies house, and my accountants.
Is there any other way I can rescue this money that I stupidly allowed to stay in the company?
Thanks for any ideas you might have.
Background:
I am a contractor operating through my own limited company.
In the past three years, I gave myself the following income (through salary + dividends):
2012-13 ~£100k (~13k SA tax due)
2011-12 ~£42k (~£0 SA tax due)
2010-11 ~£44k (~£0 SA tax due)
The reason I only took out £44k and £42k was because at the time I didn't need any more money personally, not realising the implication of the £100k threshold (losing the allowance at a 2:1 ratio). Now I'm faced with wanting to withdraw the savings I allowed to accumulate in the company, but for every £1 over £100k I withdraw, I end up paying almost 50p in tax.
Is there any way to go back to 2010/2011 and declare a greater dividend? This would require new company accounts and new SA returns, probably annoying a lot of people in the process, in particular HMRC, but also companies house, and my accountants.
Is there any other way I can rescue this money that I stupidly allowed to stay in the company?
Thanks for any ideas you might have.
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