Ltd Company Director and full time job

Dazed_and_C0nfused

Your "earnings" would be £90k but your taxable income would be £100k.

If that was your only taxable income then you would pay tax as follows,

£12,570 x 0% (Personal Allowance)
£37,700 x 20% (basic rate)
£39,730 x 40% (higher rate)
£2,000 x 0% (dividend nil rate)
£8,000 x 32.5% (dividend higher rate)

Note if you had even just £2 in taxable interest (or any other taxable income) then you would start to lose some of your Personal Allowance and the figures above would be wrong.

sdyson31

Dazed_and_C0nfused said:

Your "earnings" would be £90k but your taxable income would be £100k.

If that was your only taxable income then you would pay tax as follows,

£12,570 x 0% (Personal Allowance)
£37,700 x 20% (basic rate)
£39,730 x 40% (higher rate)
£2,000 x 0% (dividend nil rate)
£8,000 x 32.5% (dividend higher rate)

Note if you had even just £2 in taxable interest then you would start to lose some of your Personal Allowance and the figures above would be wrong.

Thanks.

If i take 60k dividend then would i end up paying 50% tax on 90k earning and 32.5% on 60k Dividend ?

I think 50% tax starts on 150k earning.

csgohan4

Don't forget the 19% corp tax on top of your own personal dividend tax since your a man  Company. So it may not be as tax efficient. 

sdyson31

My wife doesn't work, she is on DLA.

She does some light weight work for me, like sending emails and preparing invoices.

Is it worth adding her to my company so that she can either earn salary or get dividend?

I have checked the government guideline and she doesn't need to inform disable service centre on starting a new job.

Reporting changes that affect your PIP - Citizens Advice

uknick

sdyson31, it does look like your accountant is getting his fee for doing very little work.  Most of what you've asked are perfectly normal questions for someone starting in business and I'd expect to answer most of your questions as part of the annual fee.  If they're not prepared to deal with this sort of stuff without extra charge, be careful as to what they'll actually do within the fee when it comes to the preparation of your year end accounts and CT tax return.