Dividends beyond £5k taxed wef 2016!!

[SimonMac]

Now things are sinking in, I have been thinking, to me this all smacks of keeping moeny in the company, but what about re-investing in yourself.

Why not spend £5k on training courses, skill up and try and increase your earning potential, I know you will always be restricted by the keeping to the same skill set cluase, but we are creative people, shirley we can work something out.

I already knew I was going to get my ITIL Expert, but now I am thinking maybe copmplimenting it with COBIT too

[BrilloPad]

Now things are sinking in, I have been thinking.

Why am I still in the UK?

Oh yes. baby bp. As soon as he is 18 I am gone....

[minestrone]

Remember we're all in this together.

[NorthWestPerm2Contr]

Well done George, you just encouraged all our entrepreneurs and talent to leave the UK.

[PurpleGorilla]

It's the mileage that stings - I do up to 800 a week - getting the expenses on this is essential for my operation.

[mudskipper]

I'm thinking along the lines of NWP2C - take the retained profit (my warchest) this year and swallow the tax hit, then future excess beyond the higher threshold goes straight into the pension. And I'll bung Mr ms 5K a year too. But no rush - will wait for the detail to emerge.

[DaveB]

Now things are sinking in, I have been thinking, to me this all smacks of keeping moeny in the company, but what about re-investing in yourself.

Why not spend £5k on training courses, skill up and try and increase your earning potential, I know you will always be restricted by the keeping to the same skill set cluase, but we are creative people, shirley we can work something out.

I already knew I was going to get my ITIL Expert, but now I am thinking maybe copmplimenting it with COBIT too

Agreed. Draw the minimum divi needed for personal income and leave the rest in the company or put it into a pension.

Build up enough cash to cover a years worth of living expenses, close the company taking advantage of ER, take a year off to work on a "plan b", when it doesn't work out, come back and start over with a new Ltd.

I can see a new market developing to advise Ltd's investing their profits to get a better return that the poxy interest rates on business deposit accounts.

[jamesbrown]

Well done George, you just encouraged all our entrepreneurs and talent to leave the UK.

It did cross my mind. I could live elsewhere, in theory. However, when the dust settles, it isn't really a decision to base on the loss of 10k or so, and the rules on residency are much tighter now, so if you leave, you'd better make it clean.

[MarillionFan]

Well done George, you just encouraged all our entrepreneurs and talent to leave the UK.

If you mean Brillo then the state of our country is already fooked

[WordIsBond]

Agreed. Draw the minimum divi needed for personal income and leave the rest in the company or put it into a pension.

That can have some disadvantages, too.

If you end up IR35 caught, and you have money in the company, they can take it.

If the company gets sued, the money in the company is vulnerable, if you've taken it out first it isn't.

Georgie isn't done, and someone else comes after him, too. If you leave money in the company, it may be even more expensive to get it out in future.

It's still probably the way to go for most people, but it may not work out well.