Shareholder director works as an employee 9-10 hours a day. ( avg 40 Hours per week). He only takes £8K salary per annum. (tip: Min wages )
He takes £100,000 as dividends per annum.
Is this tax law/compliant ?
Please share your thoughts.
Replies (18)
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Yes. Nearly every one man company does it.
Not sure "nearly every" one man company takes £100,000 in dividends.
Truthsayer wrote:
Yes. Nearly every one man company does it.
Not sure "nearly every" one man company takes £100,000 in dividends.
I'd love to, but not quite there yet!!!!
Why would you lose your PA like that?
And why do you think minimum wage matters?
Leave it to your accountant.
Income £100,000, personal allowance, £12,500 .
Income £108,000, personal allowance £8,500. I'd have said £4,000 had been lost
I hope you don’t offer tax advice - any extra would be taxed at 60% (less tax relief of 19%).
I think you'll find that the extra would be taxed at an effective rate of 48.75%, given that the "top slice" is dividend income.
What has minimum wage got to do with it?
ireally has already asked that, without the OP clarifying the point.