With inflation on the rise, and the compounded devaluing effect that has on cash, does anyone plan to change their dividend drawdowns?
And if not, at what rate of inflation would people consider high enough such that they should voluntarily pay more dividend tax so they can get the money out and either spent, or invested somewhere more inflation proof?
I ask as I have a 6 figure sum in the LTD, that if I stick to taking out so I stay in the base rate of personal taxation, will still be in the company in 3 years (or longer if I carry on earning). Inflation will be eating away at that all the time, and I don't see any major changes in savings rate interest coming.
I am considering pushing up to the top of the higher rate in 21/22 to minimise that effect, but wonder what others are thinking.
And if not, at what rate of inflation would people consider high enough such that they should voluntarily pay more dividend tax so they can get the money out and either spent, or invested somewhere more inflation proof?
I ask as I have a 6 figure sum in the LTD, that if I stick to taking out so I stay in the base rate of personal taxation, will still be in the company in 3 years (or longer if I carry on earning). Inflation will be eating away at that all the time, and I don't see any major changes in savings rate interest coming.
I am considering pushing up to the top of the higher rate in 21/22 to minimise that effect, but wonder what others are thinking.
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