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Take contractor invoice as PAYE

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    #11
    Originally posted by smileyface View Post
    A perm employee on £100K a year gross, takes home around £65K net.

    As a contractor on £100K, if I choose to take the whole lot as salary, ie £8,333 a month, do I have to pay any corporation tax?

    Effectively my question is: Is corp tax based on revenue or revenue - salary?
    Ct is paid on profits. Salaries reduce profit so no. Of course with 100k revenue the max salary you could pay would be about 88k due to ers ni.

    Comment


      #12
      A contractor on only £100K a year?
      You need this forum

      To answer your question seriously, if you have a cash card on your company account, you can take it all out as cash, tax free.

      HTHBIDI

      Comment


        #13
        You are in the right forum.

        Don't take all that as salary, are you mad !

        Get it all into some offshore trust, don't ask me I don't know how they do this. Since the money is offshore you don't have to pay any tax, just spend it all. Some day HMRC might ask about it but i think they have a window of 5 years to do that and just make sure they don't find out anything till then.
        Vote Corbyn ! Save this country !

        Comment


          #14
          Originally posted by smileyface View Post
          A perm employee on £100K a year gross, takes home around £65K net.

          As a contractor on £100K, if I choose to take the whole lot as salary, ie £8,333 a month, do I have to pay any corporation tax?

          Effectively my question is: Is corp tax based on revenue or revenue - salary?
          Bad strategy. How are you planning to pay the hookers?

          Comment


            #15
            Don't overthink it.

            1. You only pay tax on what's left over after expenses.
            2. Simply drive your car 392000 miles each year and there will be nothing for the tax man to get his grubby mitts on.

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              #16
              Take contractor invoice as PAYE

              Taking it all as salary is tax inefficient. You will pay high rate tax on a big chunk, which is a lot more than CT. Speak to an accountant for the best strategy with you circumstances.

              Ps: £100k p/a is perfectly reasonable.
              http://www.cih.org/news-article/disp...housing_market

              Comment


                #17
                FTFY

                Originally posted by PurpleGorilla View Post
                Ps: £100 p/h is perfectly reasonable.
                The Chunt of Chunts.

                Comment


                  #18
                  Originally posted by smileyface View Post
                  A perm employee on £100K a year gross, takes home around £65K net.

                  As a contractor on £100K, if I choose to take the whole lot as salary, ie £8,333 a month, do I have to pay any corporation tax?

                  Effectively my question is: Is corp tax based on revenue or revenue - salary?
                  Nope, but you will have a whopping Employers NI bill
                  "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

                  Comment


                    #19
                    Your limited company could pay a significiant sum (£40K p.a.) into a pension, then at age 55 take 25% of it tax free. Then drawdown the rest monthly, under the new rules, which allows 25% of the drawdown tax free too.

                    This will still keep your CT at zero, but will also reduce your NI and tax significantly.

                    Comment


                      #20
                      I'm sure I saw a thread on here about corporation tax that may help you...
                      http://forums.contractoruk.com/gener...ation-tax.html
                      …Maybe we ain’t that young anymore

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