Extra income safely tucked away for rainy days

huu

Hi all,

I think this will be the best place to discuss this.

In my opinion, becoming rich, is not how much you earn....but how you manage money (this includes everything from how you save, spending habits to ISA, trust, company structures).

So here is an idea I have been dwelling on:
Problem (scenario):
You are on your way to make millions - however you're still on the PAYE, you are comfortable and quite satisfied with the job/life - but you want to keep your job (incase things don't go to plan) and you don't want to be stung by taxman as you're already on higher earner band.

Possible solution:
Creating a limited company, paying yourself zero salary - so all profits are retained in the company (ofcourse you'll pay corporate tax - this isn't some tax evsion scheme don't worry).

This serves two purposes:
-if you're out of a job, you can hire your self (protection)
-when you retire, you could cash in as top-up (your own pension plan?)

Sounds any good?

Want to hear all your thoughts the good the bad and the ugly





Disclaimer:
i'm not a tax specialist, or company director, just a regular guy on the payroll hoping to make it rich one day - theses ideas are my own complete whimsical thoughts in my spare time