Looking for Tax Advisor Tips for Dividend & PAYE Situation

[Lance]

it's almost certain that your accountant will provide perfectly good advice.

And it should be :
1) take dividends and pay tax (33.75% for higher rate tax payers), or
2) close the company and pay capital gains tax (20% or 10% if you can get BADR).

anything outside those 2 is likely to be dodgy. As JamesBrown says.
There are some tweaks that can be done, via your spouse mainly, but they still fall inside those 2 major options.

[jamesbrown]

a more proactive touch

Word of advice. In looking hard to save tax, don’t look too hard. There are plenty of dodgy scheme promoters out there looking to scam you. None of these schemes work. Back in the real world, there’s little you can do other than plan your dividends more carefully, which ultimately means taking smaller dividends or offsetting your income with pension contributions. You could also retain those profits and, when you retire eventually, wind up the company and distribute the retained profits as capital at CGT rates (10% with BADR, assuming it still exists at the time and you meet the conditions). Again, though, there’s no magic sauce that allows you to take a high income and avoid large tax payments, that’s how it works.

[eek]

Dividends and paye is all income.

the only way you can reduce the total amount of tax you pay is to put more into a pension pot or tske less in dividends

Edit to add you can also minimize your company’s cost by paying you a salary of £10,000 or so (exact figure depends on whether you have other employees and so whether your company qualifies for the employer nil allowance).

[achris]

Hey everyone,

I run my own limited company and mainly pull in income from dividends. I don't take a salary from my company since I've got PAYE income elsewhere. Last year, I declared a hefty dividend, and the tax hit was brutal I'm aiming to navigate things better for 2023/2024 and could really use some expert advice.

I've brainstormed a few strategies, but I'm keen to bounce ideas off a seasoned Tax Advisor. My current accountant is super responsive, but I'm feeling the need for someone with a more proactive touch when it comes to tax planning. Maybe it's outside his wheelhouse, or perhaps I just need a fresh perspective.

Anyone have recommendations for a Tax Advisor who's clued up on this and cool with remote consultations?