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Recent content by Olly

  1. O

    Retained profit - how would you get your mitts on it?

    I'm still "struggling" with this one and the £90k Pension isn't an option. My allowance is fully used for the foreseeable future by my new perm job (they add employers NI to the pot too!). My marginal rate of tax this year is 40% Pay the corp tax and go BADR MVL isn't allowed till Jan 27 and is...
  2. O

    Do you claim "trivial benefits"?

    Like the title suggests - do you claim trivial benefits? If I've read up on the is correctly, even as the director, sole shareholder and sole employee of your own close Ltd you can give yourself gifts up to £300 a year and another £300 worth to your household family. This is an addition to £150...
  3. O

    Retained profit - how would you get your mitts on it?

    I'm not at all sure that's the case. (a) the Pension option may be challenged by HMRC and that's a headache I absolutely don't want. (b) I'd be "loosing" out on the salary sacrifice AVC from my new employer. This means the effective tax rate is 42% compared to 40% via BADR or 31% via dividend...
  4. O

    Retained profit - how would you get your mitts on it?

    ChatGPT - which NEVER makes mistakes - says "If a company makes very large contributions (e.g. to a director’s pension in a year of low/no trading), HMRC might question the timing or wholly and exclusively test — especially if it looks more like personal wealth planning than a business expense."
  5. O

    Retained profit - how would you get your mitts on it?

    I probably will speak to a "professional" but as is ALWAYS the case, it's best to inform oneself as much as possible before hand. BADR MVL can't be done until a Ltd is 2 years old by which time it will be 18% plus about £1800 in costs. A lot more than current 8.45% dividend tax (though my...
  6. O

    How long to keep IR35 insurance after strike-off?

    The IR35 insurance I have covers me for 4 years after i've stopped paying for it for contracts in the period when I was. What does the small print of yours say in that respect kijon
  7. O

    Retained profit - how would you get your mitts on it?

    My ltd co was only formed in January but now I'm taking a perm role so it's unlikely it will trade further. It has about £91K from which corp tax will/could need to be deducted. I've not taken any salary from it and in the 24/25 tax year I received a salary from an umbrella into the 45% bracket...
  8. O

    Carryforward loss as a tax wheeze?

    Great thanks - thanks that's good then. Seems sensible to slowly drain the Ltd via dividends, pension and salary then especially when BADR tax rate goes up. When I wrote the post I didn't know there was such a thing as carry back, the qu was about carry forward. Hearing about carry back is quite...
  9. O

    Carryforward loss as a tax wheeze?

    So if I understand things, salary and pension are allowable costs of doing business. If hypothetically your Ltd built up chunk - £500k let's say of retained profit but then contracts dried up so there was no income for a few years but you continue to pay the sole employee/director £12k and maybe...
  10. O

    Best to pay no salary?

    Nah - real contractors max it out every year so not a factor :)
  11. O

    Best to pay no salary?

    £60K is the max you can put into a pension and still get tax relief on it - used to be £40k
  12. O

    Best to pay no salary?

    Thanks but why aren't you factoring in employers NI?
  13. O

    Best to pay no salary?

    how do you mean?
  14. O

    Best to pay no salary?

    But isn't there NI and Apprenticeship levy to pay too? EDIT Ah, the NI is only after £5k next tax year. I guess the levy is on the lot. Hmm...going to need to think this through more. I have other income from bank interest that's not insignificant to consider.
  15. O

    Best to pay no salary?

    NLUK - I don't have an accountant to ask (yet) - I don't even have a signed contract role. Everyone else, It's been a long time since I closed my Ltd so I'm very rusty on all things HMRC but now I've been offered an outside IR35 role. I have made sufficient NIC to qualify for a full state...
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  1. Contracting
    1. General
      1. Brexit
    2. Business / Contracts
      1. Coronavirus Assistance
    3. Accounting / Legal
      1. Umbrella Companies
      2. HMRC Scheme Enquiries
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      4. IR35 Reform
    4. Technical
    5. Welcome / FAQs
  2. Social
    1. Light Relief
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