Higher Rate and Take Home - What do you prefer?

[psychocandy]

Thanks for the replies. some interesting thoughts on things

I like the idea of a big divi at the beginning of the year. I typically take a divi once every few months.

Taking it at the beginning of the year and stashing it in a interest account shoudl be good

I do divi every month based on P&L. Why not?

[psychocandy]

I do find it very surprising people don't do this more. I had one guy say he had enough to do it but it was his warchest so he didn't want to touch it. I did try and explain about it still being his warchest, just in a high interest account but he didn't get it so gave up.

Never done it in past. Interest rates were just too crap to make it worthwhile.

Just looked at aldermore. Pretty good that you tie it in until a fixed term (i.e. until you need to pay CT). Only thing is you've got to stick it in in pretty much one go - you cant stick CT money in every month.

But I guess you could put a lump in and then use instant access one for the rest.

Still not sure if I can be bothered for the sake of £100 or so though.

[TheFaQQer]

Only two? What is going to be heating the south and west wings of FaQQer towers then?

I don't care how cold the children and servants are.

[TheFaQQer]

I do find it very surprising people don't do this more. I had one guy say he had enough to do it but it was his warchest so he didn't want to touch it. I did try and explain about it still being his warchest, just in a high interest account but he didn't get it so gave up.

When I had a mortgage, it was an offset so it made sense to stick in a big lump sum at the start of the tax year and gradually draw against that throughout the year.

Now that I don't, the best I can see is the two Santander 123 accounts giving 3% interest for the bulk of the year.

[TheFaQQer]

Never done it in past. Interest rates were just too crap to make it worthwhile.

Just looked at aldermore. Pretty good that you tie it in until a fixed term (i.e. until you need to pay CT). Only thing is you've got to stick it in in pretty much one go - you cant stick CT money in every month.

But I guess you could put a lump in and then use instant access one for the rest.

Still not sure if I can be bothered for the sake of £100 or so though.

I stick the money in at the end of the trading year and leave it there for nine months - I make a rough guess of what the corporation tax will be (and I'm usually over).

The main reason isn't about making that much on the interest (but compared to the 0% interest Santander pay) - it locks the money away so the company always has the CT bill covered. The interest is just a nice thing to have as well, though.

Last year, I had enough money in the current account to cover the corporation tax bill, so rather than close the Aldermore account, I just rolled it over for another year on their deal where you choose you own lock in time / interest rate.

Interest rates are still pretty crap, but I'll take something over nothing any day of the week.

[Barley]

I leave in the tax money and draw the rest. I figure that you only take the tax hit once, outside my company the money is working for me and split a cross equities and BTL.

Takes 2-3 years to grow enough to overcome the tax hit.

[northernladuk]

Never done it in past. Interest rates were just too crap to make it worthwhile.

Just looked at aldermore. Pretty good that you tie it in until a fixed term (i.e. until you need to pay CT). Only thing is you've got to stick it in in pretty much one go - you cant stick CT money in every month.

But I guess you could put a lump in and then use instant access one for the rest.

Still not sure if I can be bothered for the sake of £100 or so though.

You seem to be bothered to sign on for half that a week though.......

[psychocandy]

You seem to be bothered to sign on for half that a week though.......

Never ceases to amaze me how often you bring this up and how much it seems to bother you.

Suggest you never watch 'Benefits Britain' on TV - might just tip you over the edge! :-)

£72 a week for JSA I believe (its been over a year now since I last claimed though). And of course, over 13-14 weeks it does add up.
And when you've got no gig to go to you have time to sign on so why not?

[northernladuk]

Never ceases to amaze me how often you bring this up and how much it seems to bother you.

Suggest you never watch 'Benefits Britain' on TV - might just tip you over the edge! :-)

£72 a week for JSA I believe (its been over a year now since I last claimed though). And of course, over 13-14 weeks it does add up.
And when you've got no gig to go to you have time to sign on so why not?

Just saying like. You can't be arsed to manage your finances effectively for free money but you can be arsed to scrounge of the state for roughly the same amount. Speaks volumes. Just keeping it real..

And for me bringing it up? It's in your signature you moron.

[ItRYmyBEst]

I take £10k salary, MrsF takes £5k (whatever the NI threshold is) for her work. Dividend of £32k at the start of the tax year, £8k to MrsF for her shareholding.

Money goes into a Santander 123 account for me, and one in joint names so we get the 3% interest on that for the year. Anything cash balance over £40k goes elsewhere for saving.

Company money left over gets put into various accounts - at year end, corporation tax money gets locked away for 9 months in a fixed term account (Aldermore), some goes into Aldermore instant access, some goes into CCAB 30 day account to get better interest rates. Nowhere has more than £80k in total because of the FSCS scheme. Company also pays into a pension fund for me and MrsF every month.

I don't need more money to live off, so I may as well leave it in the company so that when I close it down I can get ER on the balance and take it out that way.

If I needed more money (eg. I've just booked the roofing company to come and re-roof the house, and we'll get a wood burning stove at the same time while the scaffolding is up), I'd take it out of the company. But I'd prefer not to if I didn't need it, though.

Can't MrsF get £32k also? or is it a % of what you get in ratio to shareholding?