Minimising dividend payment

[chopper]

So, forgetting that they are personal cars, but instead they would just be cars (or tanks or widgets).

If you sell them to your business, and your business sells them, then it would have to pay corporation tax on that profit and you would pay dividend tax when you take the money back out of the business.

So overall it doesn't make sense at all really.

[mudskipper]

Don't you need to quote the original offence to do a ??

The original, or subsequent occurrence would have done.

I presumed he had a fleet of APVs.

[northernladuk]

personal

Don't you need to quote the original offence to do a ??

[TheFaQQer]

personal

[Scruff]

Is your Personnel Car a Horch?

[northernladuk]

Why would your 35k dividend go down? You've declared and paid yourself it yes? Over and beyond corp tax??

Please start speaking to your accountant. He knows your situation best and he can work with you to make sure you are managing things in the right way to suit your situation.

[WTFH]

As someone asked earlier... how many cars?
Also, what cars are they that:
1. They keep breaking down, requiring you to use others
2. You think will appreciate in value

[newtothegame]

Hi all,

Sorry this is not about a company race horse.

My plan is to continue to use my personnel car and claim pence per mile.

This question is about...buying stock (be it cars/bottle tops etc) to sell on. In this example it would be cars, that would be sold to my company from myself, these cars would then become stock, with the intention of selling them and making a profit. They would not be used, simple stored of the road, in a garage, as stock.

So in reality my 35K dividend payment become 27K, as the other 8K would have bought stock (cars),for the purpose of the business to sell.

[LondonManc]

Hi all,

An interesting question for you.

In the last year I have covered 40K miles, being on a 4 month rolling contract and not having the capital to buy a new car at the start, I have ended up with a fleet of personnel used cars. Always having something fixed and ready to ferry me to the contract... Not ideal but has kept me in business.

Now with one week to year end, I have pulled 35K in dividend + paye, which has given me a 1800 dividend tax bill ( Dividend Tax Calculator ) over and beyond corporation tax.

My question is, can I personnel sell 1 or 2 cars to the company as stock, which will be off the road and purely put up for sale, thus meaning the 35K dividend becomes less than 29K, therefore I will pay less or no dividend tax. If that makes any sense.

Obviously this means my company will provide IT services and car sales.

Many thanks.

Have you asked your account about the cars?

[northernladuk]

I don't think company racehorses have been covered (yet). You have to go to the ipse forums for that.

We've covered company horses. Maybe not race horses particularly. And it was in General :

http://forums.contractoruk.com/gener...any-horse.html

[mudskipper]

Anything you can think of will have been covered.

I don't think company racehorses have been covered (yet). You have to go to the ipse forums for that.

[northernladuk]

Company cars are generally not a good idea for contractors. We've covered them infinitum on here so a search will throw up a ton of threads about the current situation. What's going to happen going forward isnup for debate though. Your accountant is your first stop here.

Also rather than just throw an old idea you come up with on here have a search using the method showing at the top of the welcome section I.e. company car site:forums.contractoruk.com or use Google. Anything you can think of will have been covered.

[WTFH]

It probably depends on whether you liquidate your company!


Best advice would be to ask your new accountant.


Also, how many personal cars are we talking about in your fleet?

[newtothegame]

Hi all,

An interesting question for you.

In the last year I have covered 40K miles, being on a 4 month rolling contract and not having the capital to buy a new car at the start, I have ended up with a fleet of personnel used cars. Always having something fixed and ready to ferry me to the contract... Not ideal but has kept me in business.

Now with one week to year end, I have pulled 35K in dividend + paye, which has given me a 1800 dividend tax bill ( Dividend Tax Calculator ) over and beyond corporation tax.

My question is, can I personnel sell 1 or 2 cars to the company as stock, which will be off the road and purely put up for sale, thus meaning the 35K dividend becomes less than 29K, therefore I will pay less or no dividend tax. If that makes any sense.

Obviously this means my company will provide IT services and car sales.

Many thanks.