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Reply to: No personal allowance left
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Previously on "No personal allowance left"
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If you're not actually working at the moment, draw it all as dividends (paid for out of retained profit, of course).
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Thanks for the advice.
Just completed my first contract and looking for my second.
Not sure when I will retire permanently - 5 years max, sooner if I can't find a suitable contract.
Target daily rate 300 - 400
I probably need to draw around 1500 per month to live.
So what would be a reasonable salary / dividend ratio bearing in mind I have already used all my tax relief.
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Originally posted by ratewhoreAre you saying if you are on the bench you should not be drawing a salary?
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Originally posted by Lucifer BoxI would venture that should say "No. 3 from contractors who are clueless".
Are you working? If so, 2, otherwise 1.
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Do you need the extra cash and when are you intending to retire properly.
how much cash is there ?
How about take minimal salary then esc c.16 ?
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Originally posted by arrowoneNo.3 from contractors who have been in business long time and suggest options 1 & 2 run risk of drawing unwanted attention. No.3 guarantees quiet life.
Are you working? If so, 2, otherwise 1.
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Originally posted by arrowoneBecause I am drawing a pension I have no tax allowance left.
I have spoken to accountant, contractors and surfed this web site and get conflicting advice:
1. Don't draw a salary, just dividends
2. Pay small salary rest in dividends
3. Draw only salary and bonuses not dividends
No.3 from contractors who have been in business long time and suggest options 1 & 2 run risk of drawing unwanted attention. No.3 guarantees quiet life.
I would welcome advice.
Leave a comment:
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No personal allowance left
Because I am drawing a pension I have no tax allowance left.
I have spoken to accountant, contractors and surfed this web site and get conflicting advice:
1. Don't draw a salary, just dividends
2. Pay small salary rest in dividends
3. Draw only salary and bonuses not dividends
No.3 from contractors who have been in business long time and suggest options 1 & 2 run risk of drawing unwanted attention. No.3 guarantees quiet life.
I would welcome advice.Tags: None
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