Reply to: Salary amount

[psychocandy]

Basically its stats, if you are paying the minimum your chances of being investigates is 1 in 7 if you are paying above, the chances are 1 in 20 - or so am told... its up to me at the end, that was just an advise, I just wondered what the majority here thinks? Also if any accountants around to shed some light?

Bulltulip. Who told you that?

[d000hg]

I pay myself £7,488, increasing to £7,696 after April.

Woohoo, payrise!!

Personal tax allowance increases, but upper tax limit comes down.

[d000hg]

I wonder how many get the minimum salary £8,100 p.a from their Ltd and how many go above e.g. around £12K per anum?

Well done, you make a poll which leaves out the option most of us would probably tick (<£8100). And you state that £8100 is the minimum, which it clearly isn't.

Perhaps a moderator could redeem this useless thread.

[northernladuk]

Ill agree... think of a datawarehouse that looks for dodgy things in your submitted accounts. The more dodgy things you have the more likely you are to get to the top of the list of people to take a look at.

For example... and this is speculation... Im presuming for SA if you take more expenses than dividends, no salary, have been doing so for 10 years not 2, theres a sudden drop in your declared income, you are claiming private mileage AND have a company car on your P11d, you have "gifted" £3000 to clients in entertainments fees in the last year and taken several overseas flights despite having no overseas income declared on your VAT and CT returns, you might be getting a visit. I dont know how far they cast the net, but I was there 5 years ago and they were looking into the same software the intelligence agenices use to track terroists. Google Dettica and HMRC and youll get an idea of what they can do. Why.. to increase the tax collected from a given number of tax collectors. I,e efficiency. If I were HMRC id wait till someone had 5-7 years accounts submitted before doing an investigation. Makes it worth the effort .

So you don't really know then.

[IR35FanClub]

I agree with Northernlad on this. Thats rubbish. Those odds are way out. And i seriously doubt that an extra few hundred pound in tax would make a difference to whether your investigated.

However it is always worth paying some NI otherwise the year wont count towards your pension contributuions. Not that it amounts to much these days anyway, but better than a poke in the eye

Ill agree... think of a datawarehouse that looks for dodgy things in your submitted accounts. The more dodgy things you have the more likely you are to get to the top of the list of people to take a look at.

For example... and this is speculation... Im presuming for SA if you take more expenses than dividends, no salary, have been doing so for 10 years not 2, theres a sudden drop in your declared income, you are claiming private mileage AND have a company car on your P11d, you have "gifted" £3000 to clients in entertainments fees in the last year and taken several overseas flights despite having no overseas income declared on your VAT and CT returns, you might be getting a visit. I dont know how far they cast the net, but I was there 5 years ago and they were looking into the same software the intelligence agenices use to track terroists. Google Dettica and HMRC and youll get an idea of what they can do. Why.. to increase the tax collected from a given number of tax collectors. I,e efficiency. If I were HMRC id wait till someone had 5-7 years accounts submitted before doing an investigation. Makes it worth the effort .

[Contreras]

I pay myself £7,488, increasing to £7,696 after April.

Woohoo, payrise!!

LOL, you joker.

You'll also pay £1,100 less in dividends before reaching the high rate threshold.

The same earnings and retained profit will see take home pay reduced by about £300/pa* compared to this year.

* according to my calculations, IANAA.

[Nixon Williams]

Thank you, I thought the threshold has increased to a £8100, so obviously am wrong. Thanks for letting me know, but true I am told I'd have a liability on that amount but its not much.

Thanks again.

It is confusing but the tax threshold for 2012/13 is £8,105, (£9,440 for 2013/14) however in order to avoid paying NIC (both employers and employees) than the optimum salary to pay is £7,488 for 2012/13, rising to £7,696 for 2013/14.

It would be nice if we could get back to the time when the starting thresholds for PAYE and NIC were set at the same level.

[Bunk]

I pay myself £7,488, increasing to £7,696 after April.

Woohoo, payrise!!

[quackhandle]

As I said I don't care what you say/think about my questions, I will still ask my questions like it or not, happy to admit I have not given accounting much thought in the past, if you don't like my questions, you can take a hike

qh

[pcgtron]

I can't vote either as no option for 7488

[northernladuk]

As I said I don't care what you say/think about my questions, I will still ask my questions like it or not, happy to admit I have not given accounting much thought in the past, if you don't like my questions, you can take a hike

On the contrary, I love your questions..

[SandyD]

I am not trying to bully you from asking, maybe think a little about what you are saying would be nice but the more you post the more I have to do

As I said I don't care what you say/think about my questions, I will still ask my questions like it or not, happy to admit I have not given accounting much thought in the past, if you don't like my questions, you can take a hike

[northernladuk]

Dear NLUK you made your point in every single post anyone posted, now please stay away and refrain from replying.

Again this is an accounting forum and I will/shall ask any questions that I do not know the answer to whether you like it or not, so you will not put me off asking with your bullying tactics.

I am not trying to bully you from asking, maybe think a little about what you are saying would be nice but the more you post the more I have to do

Thanks for the link, will look at it but this is a Poll. So vote please.

I can't. There is no option for me to vote.

[jamesbrown]

Basically its stats, if you are paying the minimum your chances of being investigates is 1 in 7 if you are paying above, the chances are 1 in 20 - or so am told... its up to me at the end, that was just an advise, I just wondered what the majority here thinks? Also if any accountants around to shed some light?

This is complete nonsense. No one knows, statistically speaking, how HMRC risk profile, for obvious reasons. But they are unlikely to use such a weak (non) pointer as this. Perhaps you'd care to explain, for example, why the secondary NI threshold is not a commercial salary, but 12k (or any other low k) is a commercial salary? The difference between these numbers is also close to irrelevant in terms of the potential liability (i.e. the total amount to which a deemed salary calculation might apply).

[darmstadt]

None, no salary, no divs. All the money that I earn is mine and as long as I pay all the correct deductions as laid down by law then I don't need to bother with any of that. Thats how it works here, nice and easy....