cost of going Ltd?

[GardenKit]

Stevie, you could have had just as much money out of the business and paid the very minimum NI by taking a very low salary, I earn £675 a month and pay only a couple of pence NI.

But then the company profits are voted as dividends. No Ni on these and the company has paid the tax.

We always wait until there is sufficient surplus in the bank before taking our dividends, so the first few years were a little tight, but a lot of business owners use a company overdraft to pay their own dividends. This ensures that they line their own pockets but put the company at risk.

[skyhuck]

Stevie, you could have had just as much money out of the business and paid the very minimum NI by taking a very low salary, I earn £675 a month and pay only a couple of pence NI.

But then the company profits are voted as dividends. No Ni on these and the company has paid the tax.

We always wait until there is sufficient surplus in the bank before taking our dividends, so the first few years were a little tight, but a lot of business owners use a company overdraft to pay their own dividends. This ensures that they line their own pockets but put the company at risk.

 

This is risky, as you pay 25% tax if the directors loan is overdrawn.

[GardenKit]

Surely a 'directors loan' is when the director leaves his due dividends in the business to meet the bills, rather than have the business take an overdraft?

At least thats how I understand it, but maybe its just different terminology.

[Stephen Blair]

my situation was slightly diferent to the usual, I just didn't like the lack of control I felt !

[TimberCutterDartmoor]

I think you had pants accountant mate.

 

My wife and I pay no NI monthly, we are both on the lowest salary you can that still gives you advantages of employment, the rest we take as dividends.

 

Same. Except the buggers have now reduced the tax-free dividend to a £10k limit after which you pay tax.

[eggsarascal]

Then we wonder why the country is on its knees.

[TimberCutterDartmoor]

Then we wonder why the country is on its knees.

 

Like Corbynomics is the answer!!! Lol. Utter nonsense.

[eggsarascal]

Like Corbynomics is the answer!!! Lol. Utter nonsense.

 

You are indeed correct, can you provide a link to where I supported Corbyn?...... Still nonsense?