Goodwill amortisation and state pension

[ASB]

The absolute minimum figure for a years pension credit is about 7488 from memory. Though in general as sp suggests an amount equivalent to the normal tax allowance is probably just easier.

There are some rules around amortisation and goodwill acquisition. Obviously the clients have value, talking to your accountant would be very sensible.

[Sockpuppet]

On average how long do you keep a client for? If its 10 years maybe that would be a better figure.

You might as well at least take £8100 as salary to use up your full tax code, this will also net you some NI credits for the pension but you won't actually pay an NI or PAYE.

[MnF]

Hi, I have two questions regarding the incorporation of my dental practice:

1) If I take a minimum salary (of £7,000 approx), and the rest as dividens I will not be entitled to the state pension when I retire as I will not have paid any NIC, is this true?

2) When I incorporate I will sell my goodwill (essentially my patient base) to the company, and then look to amortise this figure over a 5 year period-would this be seen as too aggressive by HMRC?

Many thanks Guys