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London perm salaries

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    #51
    Originally posted by eek View Post
    So you do have mortgages on the properties and you haven't filled in your tax returns correctly.

    But paying your parents for not doing work would be rather frowned upon were HMRC to come acalling - heck they don't like wives being paid a lot and that's perfectly allowable under S660..
    The mortgages are nearly all paid off - The accountant does submit everything properly including the section 24 mortgage interest tax deductions which are new.

    Parents do some real work like manage the properties and deal with the company tax affairs when I am outside the Uk so I am satisfied I can demonstrate real work being done to justify 12.5K each salary.

    But all of this is completely off topic = I d love to hear how others with passive income have reduced legally their perm salary tax liability without the use of a wife (which I dont have) or pension (which I am nervous to do )

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      #52
      Originally posted by LondonPM1 View Post
      The mortgages are nearly all paid off - The accountant does submit everything properly including the section 24 mortgage interest tax deductions which are new.

      Parents do some real work like manage the properties and deal with the company tax affairs when I am outside the Uk so I am satisfied I can demonstrate real work being done to justify 12.5K each salary.

      But all of this is completely off topic = I d love to hear how others with passive income have reduced legally their perm salary tax liability without the use of a wife (which I dont have) or pension (which I am nervous to do )
      So you are paying them to do things relating to assets the company doesn't own - right ho....
      merely at clientco for the entertainment

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        #53
        Originally posted by LondonPM1 View Post
        3.9K is the additional after tax take home pay from agreeing to work for 100K a year. My workings all detailed in the first post.
        I still dont get what you are harking on about and I probably have to agree with EEK that you seem to be just trolling here. Can we move this to General please ....
        Vote Corbyn ! Save this country !

        Comment


          #54
          Originally posted by eek View Post
          So you are paying them to do things relating to assets the company doesn't own - right ho....
          What you do not understand and which is completely not relevant is that the company that I used to contract through also has a property income from assets held by the company directly. I do not take any salary or dividens from the company but family members do

          I did not bring the company assets or balance sheet into this discussion because it was not relevant as no income to me comes through that

          I disclosed my passive income from assets held in personal name and the proposed salary and take home pay to show the net affect that a 100K perm salary would bring.

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            #55
            Originally posted by fullyautomatix View Post
            I still dont get what you are harking on about and I probably have to agree with EEK that you seem to be just trolling here. Can we move this to General please ....
            The executive summary for those CEOs and senior managing directors:

            If I take a 100K job then I will earn an extra 3.9K a month after tax. How much clearer can this be

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              #56
              Originally posted by LondonPM1 View Post
              The executive summary for those CEOs and senior managing directors:

              If I take a 100K job then I will earn an extra 3.9K a month after tax. How much clearer can this be
              How much did you want it to be or expect it to be ?
              Vote Corbyn ! Save this country !

              Comment


                #57
                Originally posted by LondonPM1 View Post
                The executive summary for those CEOs and senior managing directors:

                If I take a 100K job then I will earn an extra 3.9K a month after tax. How much clearer can this be
                Sounds about right as that is how our tax system is designed to work. Once you hit £100k you lose your personal allowance - that's been the case for the last 10 years.

                Oh and if you think this is bad try working elsewhere in europe and seeing how much more they will extract from you (except Bulgaria where tax rates are 10%)..
                Last edited by eek; 13 September 2020, 15:07.
                merely at clientco for the entertainment

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                  #58
                  Originally posted by LondonPM1 View Post
                  Please do tell

                  Bonkers because what? 75K PA is far too much and I should retire? Bonkers because of something else?

                  I ve looked carefully at moving the properties into a LTD - It does not make financial sense to do that with CGT and stamp duty liabilities
                  I'm guessing you have 5+ properties with 75K pure profit per annum, it should have occurred to you to run it like a business.

                  For 75K rental profits, it's made sense to operate as a business for a long time, the fact you did it in the least tax efficient way possible is on you.

                  Comment


                    #59
                    Originally posted by eek View Post
                    Sounds about right as that is how our tax system is designed to work. Once you hit £100k you lose your personal allowance - that's been the case for the last 10 years.
                    Thank you Eek - I guess my final question is what tax optimisations are there for perm salaries. Is it really only pension salary sacrifice and is that what most people do - There is no way I am working to hand over 55% of 100K to the government

                    I d be better off learning plumbing or doing something which is through the LTD then work for that kind of salary and pay that kind of tax

                    Comment


                      #60
                      Originally posted by TheGreenBastard View Post
                      I'm guessing you have 5+ properties with 75K pure profit per annum, it should have occurred to you to run it like a business.

                      For 75K rental profits, it's made sense to operate as a business for a long time, the fact you did it in the least tax efficient way possible is on you.
                      These properties were acquired before the rules changed and when mortgage payments were fully deductible and LTD mortgages non existent - The new properties that have bene bought since 2016 have all been booked through the company

                      I have told you already that the tax liability fron CGT and stamp duty is not worth moving them around so they remain in my sole name which is why i disclosed my personal passive income after deductions of lettign fees and maintenance

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