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Own limited company - bring forward income to reduce tax?
silvercar
Posts: 50,943 Ambassador
in Cutting tax
This year and next look good years income wise. In the light of the budget:eek: I'm thinking how to reduce next years tax bill.
I pay myself the personal allowance as PAYE and everything else as a dividend; some money remains in the company.
With next years tax at 50%, I thought I could max out on this year's dividend and reduce next year's dividend to be under the level for losing the personal allowance.
If the company needs more funds for stock I thought I could then loan the company some money out of this years dividend.
Any thoughts on this? Or anyone have any better plans to avoid higher tax?
I pay myself the personal allowance as PAYE and everything else as a dividend; some money remains in the company.
With next years tax at 50%, I thought I could max out on this year's dividend and reduce next year's dividend to be under the level for losing the personal allowance.
If the company needs more funds for stock I thought I could then loan the company some money out of this years dividend.
Any thoughts on this? Or anyone have any better plans to avoid higher tax?
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Or how about re-investing in the company and claiming the 100% Annual Investment Allowance against business profits?Northern Ireland club member No 382 :j0
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