What to do with £10k?

[EternalOptimist]

FTFY. Pay the debt. No brainer, surely?

WTMS

[EternalOptimist]

Not always. It's always good to have a pot of cash or some liquidity at hand for a rainy day.

Having debt IS a rainy day double G's

[RedSauce]

Why are people still taking div's this late in the year? Don't many of you divi the full wack first month in and then put it somewhere to earn a percent or two more than the business account?

WNLS

I take my annual dividend on the first day of the financial year put it into savings and transfer it from there as and when I need it. I can't see any justification for doing anything else (unless you don't have enough in the account)

[jmo21]

Just out of interest... why?

Obvious reasons would be to take dividends as the money becomes available, or to keep the company account at some threshold balance. I don't like to see my company account with only a few thousand in, irrational as that is!

Oh and also, many banks won't let you take more than £10k out in one go without getting this set up, so taking it in £10k chunks as invoices come in might be 'easiest'.

I suppose these are the reasons why, although I probably could take the whole lot out in one go next year if I wanted to.

[d000hg]

Well I am now £10k poorer. It's rather weird, at the same time I'm making a £10k transfer without it meaning much, yet also amazed how this doesn't feel weird. It wasn't long ago I was scraping £5k together for a deposit on our first house after getting married, now I'm voluntarily overpaying half my graduate salary without it even being the bulk of my "spare" money this year.

Very peculiar feeling.

[MarillionFan]

Well I am now £10k poorer. It's rather weird, at the same time I'm making a £10k transfer without it meaning much, yet also amazed how this doesn't feel weird. It wasn't long ago I was scraping £5k together for a deposit on our first house after getting married, now I'm voluntarily overpaying half my graduate salary without it even being the bulk of my "spare" money this year.

Very peculiar feeling.

Wait until you start taking home over £10k every month after tax. A wry disbelieving smile comes over your face then.

[d000hg]

In your case, a lot of disbelieving faces.

[SpontaneousOrder]

I've held off getting an accountant until I got paid (which i have been now), and also to give be a chance to learn some of this stuff myself (because even if i'm paying an account to look after me I still want to know what it is I'm actually responsible for, and how to make sure it's being done by the accountant).

So i've not talked to anyone about dividends yet.

Is the reason to pay out the lot at the beginning of the next financial year so that you only pay tax on it (or some of it) if you have enough work the following year? I.e. if i pay myself 60k dividend, but then spend a year on the bench then i'd only end up paying tax on less than half of that?

[AtW]

Not always. It's always good to have a pot of cash or some liquidity at hand for a rainy day.

Gentile is that you???

[fullyautomatix]

Gentile is that you???

No, its Gittin's girlfriend. Gentile was single from what I remember.