Own LTD company

[To BI or not to BI?]

to BI or not to BI? el duder is winding you up

...and there I was thinking that I was winning an argument....As a married man I do need that kind of gratification every once in a while

[Cactus]

...and there I was thinking that I was winning an argument....As a married man I do need that kind of gratification every once in a while

Forget it! it'll never happen!

[dotnetter]

It's always better to go with a Ltd company tax wise.

What I do is pay myself £419 wages and the rest comes from dividend.

The £419 means you wont inccur income tax and pay minimal NI.

Get yourself a decent accountant, it's worth it he will advise you on what you can claim for and what you can't.

Basically, all you need to do every month is leave 19% of your income in the company account which will cover everything, and at the end of the year, put any taxable expenses against you tax bill to get it down to around 15%.

So you get a nice bonus come year end.

Also you can get VAT registered which means you can ear a little extra from that too,

With regards to claiming subsitance without reciepts, I did it for ages through 2 different umbrella companies at £5 per day.

[jh0711]

is that £419 per day/week/month?

if it is per month and you do more than 79 hours per month then your ltd co is not paying you min wage and therefore could be a problem.......

[Bear]

minimum wage only applies if you have a contract of employment with your company. As a director you do not need a contract of employment, therefore you can pay what you want.

if I remember right, if your title suggests a role (e.g finance director) then it starts to get complicated as the role implies a contract of employment

[jh0711]

yes but the point is if you do not pay yourself min wage then HMRC do not get the tax and NI they should do on your earnings - so they will investigate you and do all in their power to prove you are a disguised employee and so should have been paid a salary (and thus have paid some tax etc)

the main thing is if your ltd co appears to be purely set up to avoid paying tax you will be investigated

obviously if you can prove you are a genuine company (say you have a website, business cards, maybe advertise your services in certain relevant publications) then all will be fine

if you think about HMRC work they firstly see the accounts then think hmmm something looks dodgy lets see what we can do down the IR35 route

what they do not do is investigate shed loads of contracts see which ones pass or fail IR35 and then see who is working on each contract and then investigate the payroll method.

so if you accounts 'look' more like a genuine ltd co then they are less likely to investigate you

pay yourself a bit more salary stop being so greedy and you should be ok

lets face it who ever heard of a company with no employees?????????

.... maybe

[Denny]

is that £419 per day/week/month?

if it is per month and you do more than 79 hours per month then your ltd co is not paying you min wage and therefore could be a problem.......

This is not a bona fide way of managing your affairs. The smaller the salary the smaller the divis too to keep outside higher tax bracket. SJD recommend a much higher salary than what you've said you pay yourself.

You are asking for trouble.