Contracting and mortgage repayments - low salary, high dividends? Other options?

[Boris4PM]

This may appear as a stupid question. My personal circumstances have changed and I am now facing a big hike in mortgage repayments (I'm looking to pay my former partner out of her share of our flat) so will be facing monthly payments of probably £2500/month.

I am in early discussions with...

[Karenurq]

I filed my accounts, but completely overlooked the fact that I had not raised, declared or paid any dividends that year.
Normally my accountant advises what to pay as salary and as dividends. As my company had been dormant (I assume that's why), they didn't offer any advice last year - I just...

[Dib]

Hi contractors, need some advise here:

1) Can I take dividends from a dormant company whilst working for an umbrella?

2) If yes, and I take dividends from my dormant company, what tax rate would I be looking at? Will these these be the usual dividends tax rate of 7.5%, 32.5%...

[AnotherGuy]

Hello,

I will be doing a MVL of a solvent LTD with considerable retained profit to distribute to just one director i.e. me.

I've communicated this to my accountant and they've cancelled the monthly DD for their services and asks for £200+VAT for cessation procedures....

[ahspooner]

Hi,

Just a hypothetical scenario.

Let's say I went MVL and the distributions arrived in April/May, and then for whatever reason I was fired/made redundant in November time.

Could I then recreate a new limited company and trade via that, on the condition...

[fiddleleaf]

Hi there, I started contracingt just about 7 months ago, and have a question about dividends.
I have taken about 2/3 of lower % dividents out, but have money in my bank account saved up for tax, just thinking is it worth taking that money out as dividents, as tax doesn't need to be paid for a...

[Presto]

Hi everyone

I'm non-UK national who used to contract for the past 5 years in the UK via a limited company. During this time I accumulated money in my company's. I moved out of the UK in May to Malta.

I went in through SRT test with a tax residency professional who confirmed...

[webanalyst]

Hi all,

I've my mother as 25% shareholder for my company as a foreign shareholder and she lives in India. How do I send her dividends share to her? Can I withdraw her dividend cash from the company bank account and record it as her dividends in company account? she doesn't have a bank...

[retyfraser]

I`ve a question on these Dividends and need to know more if what i am about to say will be illegal dividends or not.

I am an IT contractor and my company gets paid every month. Say my company bank account has £20,000 as its balance as of today. Is it correct for me to declare £19,000...

[deepblueuk]

Hello, this is my first post on this site.

Over the last 5 years, I have been contracting, through my UK-based Ltd company, with London based clients in the IT sector. At the same time, I have been tax-resident in the UK.

I do 100% of the work remotely from my laptop and,...

[James131]

Hi everyone,

I'm new to running a limited company and I have made the mistake of paying myself and the other 50% shareholder solely in dividends - £15,000 since our incorporation on 03/02/2015. I should note that we're a new start-up and neither director has any other sources of income....

[dclark82]

This is my first post so apologies if this is been addresses before - I've tried looking at the dividend link to right of this page (Limited Company Dividends Guide :: Contractor UK) and have tried searching the forums here to no avail.

Go easy on me as I'm not fully conversant on what...

[ramesh]

I am taking all of my dividends this year. If I take about 70K as dividend, Do I need to pay anything else apart from the dividend tax of 22.5%?

Is there any personal income tax is involved on top of the dividend tax?

[focus]

I do not know how many of you are aware on the extra tax on dividends that the government is introducing. The government want to stop business owners being paid via dividends to reduce tax bills. This flies in the face of risk & reward for running a business & contributing to the economy. Life...

[shtek]

Hi,
Sorry for a newbie question:
I have a ltd where I am a director( i am an IT contractor):
my salary as per my payslips is gross 999.60 every month,
I dont know why is this amount: My accountant suggested this figure
How much dividends shall i pay for the period...

[Sophieuk]

Hi all,

I have been contracting for couple of years. I am looking to buy my house and am in need of more cash for my deposit. My accountant advised me to consider making a (non working) friend as my shareholder. I am single so I dont have an option to make my spouse a shareholder....

[baj84]

Hi,

I have a LTD company where I do the usual thing of paying myself a salary and taking dividends.

I'm starting to get a small stockpile of cash and in a year or two, I'd ideally like to buy a house. What would be the most tax efficient way to get this money (around 150k)...

[spyman]

Hello all,

I am currently contracting and looking to start up a new company with my mother as a 30% shareholder. She is unemployed and I may ask her to look after my financials and invoicing etc in return for dividends or may just gift them to her because she's lovely.

...

[Paul78]

I'm currently working through my own limited company on a contract inside IR35.

I'm a higher-rate taxpayer and I'm already maxing out my pension contributions. I'm getting close to retiring and in a few years I plan to be retired or semi-retired; either way I will definitely be a lower-rate...

[uncleringo]

I started my first contract in September and have just received my first invoice payment, phew!

My earnings from permanent job salaries since April this year come to £26.5k, and for some reason my tax code was changed earlier in the year down to 108T which means I have hardly any tax...

[sbmcb]

Hi, I'm a teacher so pay tax through PAYE each month. Minimal bank interest has tax deducted each month. I have no other income besides dividends from husband's company which still keeps me below the threshold as a lower rate tax payer.

My accountant said I need to fill in a tax return...

[Willowbrook]

I was living in the UK for a year or so, and unexpectedly had to move to the USA.
I worked as a contractor in the UK and opened my own business accordingly.
During my time in the UK I racked up a rather large debt of corp tax and dividends which I'd overpaid to myself (6 thousands pounds...

[RobertTheBuilder]

Hi There,

Normally an employee, recently started doing it alone, I've incorporated a LTD and will instruct an account as soon as some cash comes in. Therefore please excuse my ignorance, I have been reading various websites, but I'm only partially more clear than when I started. ...

[The Spartan]

Hi everyone

I've done a search and haven't found much regarding this topic:

http://www.capricaonline.co.uk/guide...dend-payments/



I spoke to a friend earlier who is contracting via a LTD company and he mentioned he pays his dividend weekly....

[MnF]

Hi

I am just in the process of changing from a sole trader to a Ltd Company, and I getting lots of conflicting advice. The main reason I am changing is that I was told that I can have myself and my wife as shareholders, pay ourselves a minimum salary (about £7000/year each) that will...

[eltoro]

My current situation

Just started contracting 5 months ago

Company was set up with 1 Share

I am not married

I am the director - currently no sec

I am currently being advised to take only dividends for the remaining tax year...