What will you be doing now the tax regime has changed?

vivatifosi

Don't know about you, but I have been paying myself a wage on the money I made up to the 10% threshold, but then dividends thereafter (as a Ltd Co). Being faced with the change in regime, am thinking of switching to a higher percentage of dividends. How would this be viewed by the tax office?

Anyone else facing the same problem? What are your views on how to solve?

richt71

You can pay yourself however much you want in dividends and/or salary but it's going to be set individually based on your circumstances. Also best to consult an accountant I feel.

vivatifosi

Thanks richt71

I've been watching the news and it says the most that it will cost extra is £200 per year, which to be honest I could probably save somewhere in my business quite easily. I just object to paying the government more money. Just like I object to paying two lots of NI when there's only one of me, and their charging me more and more tax on my dividends every year (or so it seems).

martindow

I've decided to be a bit more rigorous in noting down mileage and keeping receipts for minor business expenses. I know I am a bit careless about this and that they can add up to a sizable sum over a year. If everything possible is set against the business income, it should counteract the new tax regime. Just got to keep doing this right through the year!

vivatifosi

Hi Martin,

You are so right. I've just put a spare diary in my car's glovebox as I know that I'm prone to doing little calls without writing them in my diary. I can also put down in my diary when I spend that extra £3 at the library on photocopying or spend a few pounds on tolls or congestion charges. I never seem to manage to get any of that stuff onto my expenses as it is so rarely receipted.