New Accountant - advises against income splitting
OP. Are you claiming any other expenses?
If not is it not better to just go brolly?
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "New Accountant - advises against income splitting"
Collapse
-
My only comment would be if you think paying my wife £800 a month is a lot, it’s a lot cheaper than the £24k a year her replacement is about to cost me.
Leave a comment:
-
Originally posted by Maslins View PostStill, I don't think there's a right/wrong answer to this. Each accountant will at some point have to decide where they sit along the cautious/aggressive spectrum on a variety of matters. I don't agree that an accountant should be criticised for recommending against something that lots of other people do and "get away with it".
If my accountant is cautious I want to hear his reasons. If he's out of line with what most people are doing I want him to admit it, and tell me why. I want him to make it clear what the law says and what the pitfalls are. But I certainly wouldn't dump him for giving cautious advice. I do want him to let me call the shots when something is not entirely clear, but I'll usually go with his advice even if I think it is overly cautious.
I'd be more concerned about the advice not to get a new mobile. Unless there's something OP isn't telling us about that, that one seems pretty straightforward. I'd really be pressing an accountant who gave me that advice.
Leave a comment:
-
Originally posted by WordIsBond View PostMaybe I missed the point but you didn't answer my question. Have you ever heard of HMRC challenging it? Or is this just one of those ghost stories accountants tell each other around the campfire when they get together?
Still, I don't think there's a right/wrong answer to this. Each accountant will at some point have to decide where they sit along the cautious/aggressive spectrum on a variety of matters. I don't agree that an accountant should be criticised for recommending against something that lots of other people do and "get away with it".
Leave a comment:
-
Originally posted by craigy1874 View PostIt is clearly uncommon for HMRC to challenge it, but believe me, if you get a CT enquiry, they will ask for it to be justified.
Originally posted by craigy1874 View PostSo you are assuming all children in the world are under 16? Nice one!
Leave a comment:
-
Originally posted by WordIsBond View PostEver hear of HMRC challenging director's remuneration of £8K or even £11K?
They'd have to quantify the proper amount of compensation to compensate a director for the liability they incur by serving in that role. How can they prove it should be less than £11K?
If you pay a spouse director's compensation of £50K or £100K you might have an issue, but then IT, ERNI, and EENI come into play, so no one would do that and they wouldn't be likely to object.
No reason, really, other than that it is illegal.
So you are assuming all children in the world are under 16? Nice one!
Leave a comment:
-
Originally posted by abu1 View PostI will change accountants after next financial year.
Leave a comment:
-
Originally posted by abu1 View PostHe said he does not want to bring any suspicion from hrmc on me and that I should just play it safe . I wanted to purchase new mobile phone he said don't will make things complicated
Leave a comment:
-
Originally posted by abu1 View PostHe said he does not want to bring any suspicion from hrmc on me and that I should just play it safe . I wanted to purchase new mobile phone he said don't will make things complicated
Leave a comment:
-
Originally posted by abu1 View Postmy accountant has also advised against it he also has advised against giving out dividends saying its risky and safer just to pay the tax on profits after the whole year. Told me apart from the salary leave all income in the account
Leave a comment:
-
Originally posted by jmann View Posthttps://forbeswatson.co.uk/profit-ex...use-tax-abuse/
According to this article, instead of salary, you can pay your spouse directors’ fees. You will need to appoint your wife as a director. This MIGHT be the best option for you.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: