Taking extra dividends to buy properry

[jamesbrown]

Sorry is that to me, or about some form of loan?

I'm taking it as dividends and have no idea what most of your sentance is about?

You'd better do some reading then. It's a classic n00b mistake to assume that you'll only pay the additional tax due in arrears with your SATR. On the contrary, you'll pay in advance (for the current year), in two instalments, when you have a liability greater than 1k.

[Danglekt]

I am new to crossing the threshold via SATR yes, so I'll speak to my accountant.

Thanks

[LondonManc]

I am new to crossing the threshold via SATR yes, so I'll speak to my accountant.

Thanks

NLUK will mark this down as a day of days, no question about that.

[northernladuk]

I am new to crossing the threshold via SATR yes, so I'll speak to my accountant.

Thanks

Ask him the difference between sentence and sentance while you are there

[NibblyPig]

This is a pretty good question, been wondering myself. I think the solution is to put down the smallest deposit you can get away with. Mortgage brokers have a system where you put the numbers in and press compute and it lists the mortgage deals you can get from various vendors.

I'd go to one and ask them to put in 5k, 10k, 15k, etc. and see where it hits the sweet spot. I'd also put it in for the longest term possible eg. 25 or 30 years repayment with a view to paying much less but having the safety net of lower monthly payments.

The issue for me is that I'd like to buy a more expensive house so I might need a bigger deposit, so should I start yanking out my dividends over the next few years so I have enough for a big deposit, or should I just take out below the higher tax bracket amount and hope my deposit is sufficient...

I will have to do some number crunching. I can't actually decide where I want to live though so it will be a while yet...

[yMyjgT]

Similar situation to others here.
Planning on moving to larger house next year, and so taking additional taxable dividends in 2015/16 tax year, rather than next year with the even higher dividend tax rates.

House prices are depressing me though. Stamp duty, moving costs, estate agent fees.....what a massive amount of money I need, just to hand it over for very little (well, for estate agent fees anyway). Also nervous about house prices. I realise they are high, and could easily drop, and there's always a risk in contracting that should the very worst happen, I need to sell the house....nightmare scenario....

So - the comments regarding SATR. If I happened to pay £4k tax for the 15/16 year, in Jan 2017 as usual (or before), HMRC then expect similar amounts for 16/17, which I would pay two installments of £2k in Jan 2017, and then mid 2017 ? And if I apply for reducing payments on account, but then actually still have £4k tax, HMRC kick arse and charge interest on what I should have paid them earlier?

[TheFaQQer]

So - the comments regarding SATR. If I happened to pay £4k tax for the 15/16 year, in Jan 2017 as usual (or before), HMRC then expect similar amounts for 16/17, which I would pay two installments of £2k in Jan 2017, and then mid 2017 ? And if I apply for reducing payments on account, but then actually still have £4k tax, HMRC kick arse and charge interest on what I should have paid them earlier?

Yep.

Tax needn't be taxing. It's only fair. etc.

[yMyjgT]

IF you can hang on til April and take money out then and find yourself out of contract, at least you won't have paid tax on some/all of the money you took .

Wouldn't you still be, even out of contract, extracting the same money from the company, and therefore have the same taxable income?

[TheFaQQer]

Wouldn't you still be, even out of contract, extracting the same money from the company, and therefore have the same taxable income?

If you take it all this year, you definitely pay tax.

If you take it next year, and then don't earn enough to pay more tax, then your tax is reduced.

There's something to be said for leaving money in the company until you need it.

[ChimpMaster]

House prices are depressing me too, but not as much as the tax that home owners are being raped for.

A £1.5m house will now be liable to £93,000 stamp duty.

This country is only for those who want to remain as worker bees or for those that want to leech off the state. It penalizes those who want to progress in life - unless of course you're an MP and up in the echelons of power at government. If you're hard working, entrepreneurial, looking to improve your circumstances and standard of living, then you're better off in a country that appreciates and encourages that.