Drawing remaining dividends allowance on 7.5%

[Lance]

Could be a great time to buy a house.

Buy low, sell high.

careful. I got my comment on house prices moderated for being off topic..... And now is not a great time to buy, in 12 months might very well be.

[WordIsBond]

Could be a great time to buy a house.

Buy low, sell high.

[NotAllThere]

Isn't this off topic as well?

Yes. But you didn't imply naughty words, so I'll let you off.

[northernladuk]

Off topic post using inappropriate language removed.

Isn't this off topic as well?

[NotAllThere]

Off topic post using inappropriate language removed.

[Ariosa]

No, I think I am, just needed some common sense injection and you did administer that quickly

Yeah, salary was set to optimal level for the year and I've been really good with my expenses etc.

I've also put some employer's contributions into a pension fund (just before corona hit so having big losses there already which hopefully won't be a long - term nightmare as I'm not touching the fund for many years) so I'm a bit sensitive towards 32.5% at the moment. When this crisis is over I'll definitely be less sceptic about that.

[northernladuk]

Why wouldn't you be getting the max money out of the company in the most efficient way? That's the whole point of contracting through a LTD company.

Speak to your accountant. They should be giving you a break down of the most efficient model at the beginning of the year.

Also don't let the tax tail wag the dog. Even the next tax level makes it better than a perm so if you need the money to enhance your way of life then take it. You are going to get taxed when it comes out so might as well use it if your budget allows.

All that said, just be very careful here though. The one thing you need to be focusing on above all else (IMO) is your warchest. The world is going to rat tulip and it's going to get worse. I would personally be putting everything on hold until I have at least a year of full pay/and dividends in the bank and even then I'd be considering my options carefully. No point buying yourself a new house when there is a chance of losing your gig for 6 months and running out of money.

[Ariosa]

I'm saving for mortgage deposit and I'm thinking that drawing the max dividends for the year on 7.5% is the best I can currently do to minimize tax losses on personal income.

Is this a valid approach? I still have around 10K to draw on 7.5% (after salary of £8,632 and the dividends I've already used up through the year) and I can't currently think of any other less expensive way to get cash in my personal account.