Limiting dividends in expectation of drop in 50% tax rate
I have a scenario where a client has a one-man band company with minimum salary + dividends setup.
Client is keen to cap the dividend payments such that taxable income falls below £100k so that the personal allowance abatement doesn't kick in.
This means that the distributable reserves are building up in the company.
Client thinks that if the 50% (or 42.5% in the case of dividends) will eventually (soon?) be abolished, allowing free flow of dividends and champagne.
Has anyone else using similar logic, or is there anything I have missed?
- General tax book with planning 135 2
- Limited Company - Personal Bank Account 3,187 69
- 2013/14 failure to submit end of year submission 269 11
- Gift of property & improvements 104 2
- Error in past Corporate tax return 331 5
- VAT Invoice 118 4
- Company overdue but wants to be struck off 796 32
- IHT and Swiss Property 121 1
- Sale of house with planning permission - tax free? 204 3
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 167 7
- Vat code for journal entries of director's expenses 138 2
- Claiming VAT and missing receipts 439 10
- HMRC overreaching its powers -again against a small surveying firm? 362 8
- Help with tax codes on Sage 248 1
- Letting relief on property transferred to a spouse 178 6
- VAT code for invoice from not VAT registered company 258 4
- Accounting for a finance lease 158 4
- SA302's anyone?? 531 16
- A change from the old Q v NQ debate 1,643 41
- Renting for military reasons 191 2
- Skandia using wrong address 1,620
- Nil Rate Band Trust - index linked debt by way of charge over property 901
- International interest certificate 509
- NOVA 368
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 292
- Management expenses for investment company 263
- Bonus Bonds 261
- Entertainer withholding tax in Australia 172
- tax on apprenticeship income 172
- P11D benefit received by widow 148