Dividends only?

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tim123 replied

12 December 2007, 13:57
Originally posted by Hiram King Of Tyre View Post

Only personal contributions apparently. From what I understand, company contributions are still OK.

It will compromise your state pension.

(Though as someone has said you simply have to pay a salary at the minimum NI level to avoid this. But I was being a pedant and answering the question that was asked).

tim
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kesm replied

8 December 2007, 01:25
Originally posted by Crossroads View Post

What have you been doing for the rest of the tax year? Have you not had any taxable income?

I did not have any taxable income
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Crossroads replied

7 December 2007, 13:04
Originally posted by kesm View Post

Hi all,

I am looking into taking money out of my business account. I emailed my accountant and he said that because on my P45 I have no income details,
I am able to take out between now and the end of the financial year 35k in
dividends, tax free. He mentions that this is the best tax efficient way to use my income.

Well 35k is more than enough for me.
However I have been reading how everyone takes money out in salary.
Is it ok if I just take money out in dividends and not in salary?

Many thanks.

What have you been doing for the rest of the tax year? Have you not had any taxable income?
Leave a comment:
Hiram King Of Tyre replied

7 December 2007, 12:59
Originally posted by tim123 View Post

it will also compromise your pension entitlement, should you care about such things

tim

Only personal contributions apparently. From what I understand, company contributions are still OK.
Leave a comment:
SueEllen replied

7 December 2007, 12:47
Originally posted by Just1morethen View Post

Why d'you pay for your accountants advice and then not believe it?

Shush kesm is asking for a second opinion. Sort your attitude problem out.
Leave a comment:
Alan @ BroomeAffinity replied

7 December 2007, 12:22
Originally posted by kesm View Post

Hi all,

I emailed my accountant and he said that because on my P45 I have no income details, I am able to take out between now and the end of the financial year 35k in dividends, tax free. He mentions that this is the best tax efficient way to use my income.

Why d'you pay for your accountants advice and then not believe it?
Leave a comment:
ASB replied

7 December 2007, 11:54
Originally posted by tim123 View Post

it will also compromise your pension entitlement, should you care about such things

tim

The 5225 doesn't. You still get a years credit even though no NI is paid (but nothing in the way of SSP2 etc).

Misread: you were referring to taking it all as dividends not taking only 5225 in salary and the rest in dividends.
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tim123 replied

7 December 2007, 09:07
Originally posted by Gonzo View Post

It is perfectly legal to take the money out as dividends. But, our wonderful government will think that you are in league with Satan.

it will also compromise your pension entitlement, should you care about such things

tim
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sidknows replied

7 December 2007, 08:51
the 5225 salary is a good idea as it will reduce your corp tax and you will still be able to take the money out without incurribng personal tax ... at least thats what my accountant tells me !
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Gonzo replied

6 December 2007, 22:01
Originally posted by hugebrain View Post

It is allowed to take it all as dividends, but it is more tax efficient to take around five thousand a year in salary.

It is perfectly legal to take the money out as dividends. But, our wonderful government will think that you are in league with Satan.
Leave a comment:
hugebrain replied

6 December 2007, 21:44
Originally posted by kesm View Post

Hi all,

I am looking into taking money out of my business account. I emailed my accountant and he said that because on my P45 I have no income details,
I am able to take out between now and the end of the financial year 35k in
dividends, tax free. He mentions that this is the best tax efficient way to use my income.

Well 35k is more than enough for me.
However I have been reading how everyone takes money out in salary.
Is it ok if I just take money out in dividends and not in salary?

Many thanks.

It is allowed to take it all as dividends, but it is more tax efficient to take around five thousand a year in salary.
Leave a comment:
kesm started a topic Dividends only?

6 December 2007, 21:34
Dividends only?

Hi all,

I am looking into taking money out of my business account. I emailed my accountant and he said that because on my P45 I have no income details,
I am able to take out between now and the end of the financial year 35k in
dividends, tax free. He mentions that this is the best tax efficient way to use my income.

Well 35k is more than enough for me.
However I have been reading how everyone takes money out in salary.
Is it ok if I just take money out in dividends and not in salary?

Many thanks.
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