Own LTD company

[To BI or not to BI?]

I have just found out from giant that I am supposed to be putting 80 pound a side a week for self assessment that I will have to pay because of my dividend. I don't understand this because I thought mananged companies dealt with all the tax, NI etc that your supposed to pay to inland Revenue.

AZZIK, when you are paid dividends you are also given 10% tax credits, which is supposed to cover taxes to pay on dividend up to ~£33k (or I think it may be ~£338k, if the personal allowance is included, I am not sure which is the correct figure). Assuming that your dividends for the fiscal year do not exceed that figure you do't have to worry about it, but if they do then you'll have to pay an extra 23.5% (33.5 minus the tax credit) on the exceeding amount, hence Giant's suggestion that you put some extra money aside, as they obviously forecast that the dividend paid to you will be higher than ~£33/38k

[el duder]

this is all bulltulip.

even if you go through an umbrella or mananged company you are allowed to claim a standard daily subsistence rate without proof of receipts.

[To BI or not to BI?]

this is all bulltulip.

even if you go through an umbrella or mananged company you are allowed to claim a standard daily subsistence rate without proof of receipts.

Only if you stay overnight (£5 per day if in the UK or £10 per day if you are abroad). Any other "unreceipted" subsistence claim may be contested by Hector

[Bear]

or I think it may be ~£338k,

I wish!!

[Nixon Williams]

Thanks to everyone that has replied you have been a great help.
I think I won't claim for petrol and food subsitance if it can land me in trouble.

It is nice to be able to ask experianced people for help and advice on this forum when needed.

By sounds of it it seems as a contractor you can end up with a similar salary as if you were permanant with an agency for example I have just found out from giant that I am supposed to be putting 80 pound a side a week for self assessment that I will have to pay because of my dividend. I don't understand this because I thought mananged companies dealt with all the tax, NI etc that your supposed to pay to inland Revenue.

I don't have any income coming in except this contract but no expenses and putting money aside leaves me with 67% of my salary so am I better off working permanant where I will get holidays and benefits.
My current contract falls outside IR35.

The simple answer is that you would be better off with your own company than permanent, any dividends you are paid will only have company taxes accounted for, you will have to keep some aside to meet your personal taxes. (If you are a higher rate tax payer, otherwise there is no extra tax due).

Alan

[To BI or not to BI?]

I wish!!

oops, minor type. I meant, of course, ~£38k.

Thanks Bear for pointing that out

[Bear]

I prefered your first answer!

[el duder]

Only if you stay overnight (£5 per day if in the UK or £10 per day if you are abroad). Any other "unreceipted" subsistence claim may be contested by Hector

Sorry, but this is wrong. Do you have proof of this?

I have always claimed daily subs through an umbrella at a standard rate without proof of receipts.

[To BI or not to BI?]

Sorry, but this is wrong. Do you have proof of this?

I have always claimed daily subs through an umbrella at a standard rate without proof of receipts.

http://forums.contractoruk.com/threa...tml#post163368
and
http://forums.contractoruk.com/thread12666.html

[Cactus]

Sorry, but this is wrong. Do you have proof of this?

I have always claimed daily subs through an umbrella at a standard rate without proof of receipts.

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

IMHO I'd forget about the subsistence claims unless you're working away on an overnight stop.