Not illegal, but probably unethical?

Dithering_Dad

abaxas wrote: »

You a$s is gonna sting when you write out your corp tax cheque.

It'd be the same surely? Corp tax is paid on everything other than salaries, pensions and expenses. So I'd pay the same Corp tax regardless of whether I paid myself dividends or not.

I would pay more tax on the dividends though because I wouldn't be using the tax free dividend upto the 40% tax bracket. This might lose me more in tax free income from my company than I'd gain in tax credits from the government. Tsk, there's never a break for the common man to get on in life is there?

Jaffa_Cake_5-2

Dithering_Dad wrote: »

Exactly my thoughts! The state has leeched enough off me over the years, so I guess you're right. It's payback time!!

Plus the bankers are doing it right now, so why shouldn't I get my snout in the trough with them?

I'm not agreeing with you so fail to see how I can be 'right'?

Leave the public funds for those who actually need it, which is what its intended purpose is, not to line your own pockets.

Dithering_Dad

Bean_Counter wrote: »

In addition, on such a low salary the company is unlikely to get a tax deduction on the pension payments.

This is a bit of a grey area at the moment. There isn't a legal maximum that a company can pay into an employee's pension.

Dithering_Dad

Jaffa_Cake wrote: »

I'm not agreeing with you so fail to see how I can be 'right'?

Leave the public funds for those who actually need it, which is what its intended purpose is, not to line your own pockets.

Yes, those who need it. Such as myself, who will be on a low income for a couple of years and struggling to make ends meet.

Excellent idea. Thanks again.

Jaffa_Cake_5-2

Dithering_Dad wrote: »

Yes, those who need it. Such as myself, who will be on a low income for a couple of years and struggling to make ends meet.

Excellent idea. Thanks again.

Hahahahaha yes NOW I get it. You really MUST be bored. Moron.

Dithering_Dad

Jaffa_Cake wrote: »

Hahahahaha yes NOW I get it. You really MUST be bored.

Regards, Moron.

Aw, don't sign your posts with that name.

After a little thought, I've come up with a slightly different plan and wouldlike to run it past the other contractors/brains trust.

If I paid myself £100k but put £90k into a pension plan, I'd be able to qualify for tax credits in the same way as my original post, but would not run into the dangers of an IR35 review or huge corp tax bill.

Anyone see the downside of this?

neverdespairgirl

I don't think you'd do anything of the sort, DD, just my guess about you.

steadysaver

Jaffa_Cake wrote: »

Hahahahaha yes NOW I get it. You really MUST be bored. Moron.

Clearly I am bored this afternoon too. There is football club in argentina called Moron. Oh and a team in the norwegian leagues called Frigg. (Mildly ammused me anyway)

Interesting idea by the way DD. Shows how easy it is to play the over-complicated UK tax system

steadysaver

Dithering_Dad wrote: »

Aw, don't sign your posts with that name.

After a little thought, I've come up with a slightly different plan and wouldlike to run it past the other contractors/brains trust.

If I paid myself £100k but put £90k into a pension plan, I'd be able to qualify for tax credits in the same way as my original post, but would not run into the dangers of an IR35 review or huge corp tax bill.

Anyone see the downside of this?

Remember - Pension plans can go down, as well as plummet.

Although I realise there are "safer" options available inside a SIPP should you want to ride out the current volitility

Dithering_Dad

steadysaver wrote: »

Clearly I am bored this afternoon too. There is football club in argentina called Moron. Oh and a team in the norwegian leagues called Frigg. (Mildly ammused me anyway)

Interesting idea by the way DD. Shows how easy it is to play the over-complicated UK tax system

I just hate those tax credits SS, they're a crackpot idea and a huge overhead on the Inland Revenue. If Gordo wasn;t PM I reckon the new Chancellor would do away with them.

Just don;t take the money off people in the first place, that's the correct way to do it. If you want to help low income families then simply increase their tax free allowance and allow married couples to share their taxfree allowances, so that if one person works and one is a home maker, then they're not losing £5k's worth of tax free allowance. Simple, surely?