Allowable Expenses

[arbclimber]

[

 

Ian, you cant pay salary as a dividend.

 

Yep you're right, I've just checked, you have to pay yourself say minimum wage(minimal tax) then you can pay dividend as 'top up' even if calculated monthly(based on projected profit) then it's tax free, does that make more sense!!?

 

Sorry mate, you are still wrong. Dividends are not tax free.

The basic idea is that if you earn a decent amont of money you will be paying 40% tax on it, if you take a small salary and claim the rest as dividend payments you can reduce your tax bill slightly. I think the rate for dividends up to 150k is about 35%. On small amounts, up to about 35-40K ish you pay 10%.

It can be worth doing, but IMO if you are only earning 35K a year, the additional red tape and expenses of being ltd would not be worth the trouble.

 

I dont know why your quote has appeared under my name and your quote is underneath. Anyone know why?

Edited April 30, 2010 by arbclimber
quote function is odd

[Asplen]

Serious question...

 

Could you claim massages\gym membership as a practical cost effective method to reduce likelihood of chronic injuries from work?

 

Of course the instant answer would be to "adopt best working positions etc" but I'll throw it out there anyway.

[Ian H]

Yep you're right, I've just checked, you have to pay yourself say minimum wage(minimal tax) then you can pay dividend as 'top up' even if calculated monthly(based on projected profit) then it's tax free, does that make more sense!!?

 

Sorry mate, you are still wrong. Dividends are not tax free.

The basic idea is that if you earn a decent amont of money you will be paying 40% tax on it, if you take a small salary and claim the rest as dividend payments you can reduce your tax bill slightly. I think the rate for dividends up to 150k is about 35%. On small amounts, up to about 35-40K ish you pay 10%.

It can be worth doing, but IMO if you are only earning 35K a year, the additional red tape and expenses of being ltd would not be worth the trouble.

 

I dont know why your quote has appeared under my name and your quote is underneath. Anyone know why?

 

Ok thanks, think I'll give it a swerve then,can't be doing with more redtape etc, wish my accountant could have been as concise:thumbup:

 

Don't understand your quote issue either I'm afraid:confused1:

[arbclimber]

Serious question...

 

Could you claim massagesgym membership as a practical cost effective method to reduce likelihood of chronic injuries from work?

 

Of course the instant answer would be to "adopt best working positions etc" but I'll throw it out there anyway.

 

 

I would doubt it, Even stuff like training isn't strictly tax deductable so I think you might struggle with gym membership.

 

Worth a word with the accountant though I would have thought.

[Ian H]

Oops just rechecked thread and quote issue just happened to me too:confused1:

[arbclimber]

Ian,

 

The whole quote thing seems to have gone a bit odd. Your last post was even more buggered than mine.

 

Accountants like you to be Ltd so they can charge you to do Quarterley accounts and sort the red tape.

 

I obviously cant tell you whats best for you, in your individual case, so getting your accountant to go through it with you properly, would be my advice.

[Ian H]

Serious question...

 

Could you claim massagesgym membership as a practical cost effective method to reduce likelihood of chronic injuries from work?

 

Of course the instant answer would be to "adopt best working positions etc" but I'll throw it out there anyway.

 

Definately can, I claim regular massage sessions(not that type of massage:001_tt2:) and as long as you justify it as work related I've had no problems claiming it, also got away with supplements(argued increased wear/tear) can't see why same wouldn't apply to gym.

[arbclimber]

Oops just rechecked thread and quote issue just happened to me too:confused1:

 

 

We've broken Arbtalk mate, Steve's gonna kill us:lol:

[Ian H]

We've broken Arbtalk mate, Steve's gonna kill us:lol:

 

:lol:Can he claim it as an expense tho:laugh1:

[arbclimber]

Definately can, I claim regular massage sessions(not that type of massage:001_tt2:) and as long as you justify it as work related I've had no problems claiming it, also got away with supplements(argued increased wear/tear) can't see why same wouldn't apply to gym.

 

 

Thats very interesting Ian. I would have thought it would have been a struggle to reclaim that.

 

Maybe its cos you are really old:001_tt2: