Newbie concern..

[Goodbuddha]

Hi all , sorry if this is in the wrong place just wanted some information. I've just started my first contract. I took it as I wanted to make some good money to invest, so I might go full time again after it ends in September/ 12 months. However I've been reading how hard it can be just closing a limited company down and taking the money.

I will have around 60k in the business account after corporation tax, i know I can pull out the 11,800 tax free but what will I be taxed on the remainder...I'm hearing so many things like 52%!!! To entraprauner relief ...I'm really confused?? I'm the only director and my partner can't take any extra if that helps

I know September is a way off but it's disheartening if I can't take the money at the end without being severely taxed.

Any help greatly appreciated.

S

[northernladuk]

Well you should have an accountant helping you with all this so they can answer all your questions. They will also be able to give you an overview of exactly what you will have to pay given a daily figure and estimated costs etc. If you get the right accountant and they offer freeagent you can put all your invoices in and it will tell you exactly what CT, VAT and so on you will need to pay.

Read the newbie guides and search for some calculators online at the very least.

I have to ask why you have started contracting with a clear goal but with what appears to be a complete lack of knowledge of how you will get paid and ultimately achieve your goal. Seems a bit arse about face.

Forward planning is pretty simple stuff if you do some research and speak to the right people.

[TheFaQQer]

I know September is a way off but it's disheartening if I can't take the money at the end without being severely taxed.

It's always disheartening when one has to pay tax on the money that you earn, but generally that's the way the country runs - you earn enough money, you pay tax on it.

[northernladuk]

It's always disheartening when one has to pay tax on the money that you earn, but generally that's the way the country runs - you earn enough money, you pay tax on it.

This. Take some heart from the fact LTD is one of the most efficient ways there are of doing it let short of evasion. I've a feeling the OP is exactly the type of people the schemes are targeting and only by pure luck isn't in an 90%+ scheme already.