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Reply With QuoteYeah its rumoured that the inland revenue may start applying NI to dividend payments for owner/managed businesses which may well even things up quite a lot.
Over the last few months been talking to my accountant who advised and calculated that it would be better for me to get a Limited company, just heard that there is some new laws coming out which wont make it any more beneficical than being self-employed, anyone give me any pointers?
Yeah its rumoured that the inland revenue may start applying NI to dividend payments for owner/managed businesses which may well even things up quite a lot.
hmmm great..
one step forward two backwards .... feck..
creative accounting time methinks lol
We spend every waking hour in front of a computer screen and only talk to people who give us things like food or beer. Isn't that company limited enough as it is?
no I have my own cave already pre purchased as soon as the present inhabitant dies I am in there, no electricity, no pc, no water...
ahh the solitude.. mmm tis almost tangible
surely their must be a country in europe we can move to for more favourable taxes?
I would definitely move - unless it's Belgium.
croatia ??
hmm methinks you should choose wisely.
although if well all chip in with aqua and clarke maybe we could buy part of a country and make our own country and rules up
If the rumours about dividends and NI turn into something concrete it will be yet another lump of admin. to sort out for very small companies.
At the moment if you have a limited company and pay yourself salaries eg. two of you, you lose about 40% of your salary, because there's income tax, then company NI, then personal NI. I think this counts as losing 40% because presumably the company NI is kind of personal, because its mainly your business, not loads of shareholders.
With dividends its only 10% loss until a higher income tax bracket I think. Which sort of benefits very small businesses at the 'expense' of larger ones I guess.
Perhaps there is a view that this discrepancy needs to be addressed, but it doesn't go along with the chancellors other measures eg. the 'helping' hand with the first 10,000 profit tax free and the next at 10%.
If NI was applied to dividends to bring net income in line with what you would get if self-employed, I suppose that could be viewed as fair ?? Perhaps it would also mean directors would be encouraged (although negatively) to keep cash in their companies and reinvest in the businesses ?
well at least we get to see our tax/NI used wisely and see tangible results for it all.. ahem...
makes it really worthwhile looking for any legal alternative don't it, on shore, off shore or whatever
Where do all those refugees on the telly come from? It must be empty there. We could move right in, as long as they've got broadband.
Seriously though, you can see why a lot of people don't bother declaring earnings and the like. I suppose theres all the tricks like claiming part of your home bills back and buying a new computer every week, but you still end up shelling out loads.
Just makes sunnier climes more attractive I reckon.
One positive point to limited companies is that if you set them up with yourself and your partner as shareholders, then you can effectively take twice as much income from the company as a self employed person could earn without paying higher rate income tax.
Those who can do, those who can't talk about it
Another advantage of a limited company is that should you be sued or otherwise incur a huge cost you will only loose the company, not your house, car and all your worldly goods.
As a sole trader or partnership you are open to these losses.
you need to be pretty sure this is right for you, as your accountancy fees will go through the roof compared to being a sole trader (assuming you do most of the paperwork yourself).
G.
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My accountant hasnt charged any more for being a Ltd company?
He charged more for being vat registered Grrr
When looking at the issue I prefere Ltd solely because I rely on somebody to pay me before I can pay my company bills, and if they go belly up! I don't want to pay for their mistakes with my house and my childrens futures.
Plus my Bank Manager seems to like me better! Or was that just my DGM payment?
Cleared today... At last 20 days late!
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