see! thats why i have always rated Lee more than you Murdoch!I've sent you a PM mate
Discuss ltd, salary, tax etc in the UK Electrical Forum area at ElectriciansForums.net
see! thats why i have always rated Lee more than you Murdoch!I've sent you a PM mate
see! thats why i have always rated Lee more than you Murdoch!
All it was mate is how I obtained a morgage with lack of accounts etc many moons ago.I've no idea what he said in his PM, but what I've put on the open forum is for all to view - theres not much more to add.
I'm working with a builder ATM who can't get a mortgage ........ he has a deposit but his income is too low - I did try and suggest he declared more to HMRC, but he didn't like that suggestion.
Jeeez a £500k mortgage.......... ;o)))))))We remortaged last month ....... we have over 85% equity in our house ......... they still treated me like a leaper and the misses who works for the NHS had to provide proof of all her hours, extra payments etc....
We got the money , but it was tough. Our borrowings now are 1.5 x our combined incomes
As above but my accountant issued 12 shares one for every month and did a rolling calculation with income and expenses I had a DD setup for the minimum salary then I would be informed of how much I could transfer from the business to my personal account in expenses and dividends, the expenses aren't taxable so i claimed for travel, breakfast and lunch, you need a printer/computer for business use expense it stationary and stamps stock up before Christmas expense it Christmas cards as well, I even claimed for a Christmas tree and a couple of bikes over the years.I am Ltd, vat reg, 2 directors/shareholders with two classes of shares to allow an asymmetric dividend payment schedule.
the choice of salary is very important and your accountant will advise.
I am quite old and have significant NI already in the pot, not bothered about benefits if i cannot work etc etc - so i pay myself (for my own personal reasons ) a very small amount and well below the lower earnings limit for NI. As a young person i (check with accountant) suggest you may wish to pay at least just above the lower earnings limit for NI so you build up your contributions for pension and other benefits.
At the end of the year because you have paid yourself so little you will generate (hopefully) a healthy profit. Well 19% of this is due to be paid as corporation tax, the rest is available as dividend or retained profit.
If you decide to withdraw money as dividend you will first use up your remaining personal allowance, then you use up the dividend allowance and finally you start to pay the dividend tax at the appropriate rate which is 7.5% for basic rate tax payers.
Of course if you pay yourself a healthy company pension this is free of both CT and dividend tax.
An accountant will look at the overall situation that is unique to you and your other shareholder and come up with a plan to pay the most appropriate tax, i.e. the lowest legally allowed, you can of course pay more if you are embarrassed by how little tax you pay but thats up to you and your accountant to juggle the moral dilemna.
I am a bit of a geek wrt this stuff and do my own accounts, pension, self assessment etc etc but my own situation is almost unique and will not suit all.
hope this gives a flavour of the possibilities.
cheers P&S
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