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Previously on "getting paid 5months back pay , but how do i pay?"
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im outside ir35 so dont need to worry about that, i raised it with my accountant and hes advised i can take out 1 big salary for the last 5months or so but to leave 30% in my account for various tax payments, also take out my expenses
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Thud thud thud...
The 5% doesn't exist in reality. It's not an expense, its simply the notional amount by which you reduce your gross when calculating the tax due. Have you not read the guides yet?
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Originally posted by johnywalker View PostAm I right in saying that if his contract is caught under IR35, he should take :
95% salary paying all taxes and nics
5% as expense with no bills (can we just take it to our account or should we spend on company needs through company accounts???)
Am I right?
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Originally posted by pmeswani View PostAnother thing the OP has to consider is whether his contract was IR35 caught. That could make all the difference to what they can claim in terms of expenses, salary and dividends. The other issue is related to VAT. Has the OP registered for VAT? Has the VAT been backdated? If so, has this been taken into account and paid? Has the OP's accountant backdated any fees? The initial post is far too vague to give a productive answer.
95% salary paying all taxes and nics
5% as expense with no bills (can we just take it to our account or should we spend on company needs through company accounts???)
Am I right?
Leave a comment:
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Originally posted by malvolio View PostMy question is - do you understand the difference between salary, dividends and expenses? They are not in any way interchangeable, especially expenses.
These are basics that get you serious grief if you screw them up badly enough, so get them straight.
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My question is - do you understand the difference between salary, dividends and expenses? They are not in any way interchangeable, especially expenses.
These are basics that get you serious grief if you screw them up badly enough, so get them straight.
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Originally posted by trsisko View Posthi there
Since I as rather slow in setting up my accountant and business and sorting out billing with the agency.
I am now recieving payment for working on my current gig from 10th-march to 15-August, therefore thats quite a nice sum going into my ltd company account tommarrow, my accoutants sent me a wages summary to which I should stick too. therefore staying on the lowest tax band right?
I was just wondering since im getting paid for the last 5 months should I pay myself 5months Gross Pay which is like 914pounds a month x5 or just claim a months salary and the rest in expenses and dividends?
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getting paid 5months back pay , but how do i pay?
hi there
Since I as rather slow in setting up my accountant and business and sorting out billing with the agency.
I am now recieving payment for working on my current gig from 10th-march to 15-August, therefore thats quite a nice sum going into my ltd company account tommarrow, my accoutants sent me a wages summary to which I should stick too. therefore staying on the lowest tax band right?
I was just wondering since im getting paid for the last 5 months should I pay myself 5months Gross Pay which is like 914pounds a month x5 or just claim a months salary and the rest in expenses and dividends?Tags: None
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