Employed (by own company) and Self Employed - Tax Efficiency

Employed (by own company) and Self Employed -...

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Hi All

I am currently seeking some guidance as the best way to pay myself.

I currently have two income streams:

1) Self Employed Contractor - Paying class 2 national insurance contributions - and using up all of my personal allowance

2) I also have my own company - I own 76% of the company - and I'm wondering whether I can pay myself as a contractor - or as an employee. I am concerned that paying myself as an employee would lead to 45%+ marginal tax rate because of employer/employee NI contributions and income tax - is there a better way here, or something I am missing?

Replies (2)

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By mrme89
29th Jul 2014 14:59

You're missing the training to become an accountant.

 

You have two options:-

(1) Train to become an accountant.

(2) Cough up for some paid advice.

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By andyjdicker
29th Jul 2014 16:43

Why are you taking 'remuneration' though income rather than the company which you own 76% of making a profit and paying you dividends?

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