Cant see how you are getting to work out better, unless I'm missing something obvious and cant see the wood for the trees (which has happened before today)
Depends on the exact figures and how you sell it, still possible to be slightly better off even with £40k director. Its all about the income split, and comparing it to the traditional salary/dividend approach.
My gut feeling is that they are allowable. BIM38540 states
As explained in BIM38530, the costs of civil damages arising as a result of normal trading operations are generally allowable.
equally
BIM42955 states
a payment which is solely for trade purposes and not by way of penalty for an infraction of the law is deductible.
I'd say that a dog bite isn't an infraction of the law so therefore allowable on that front, also it was civil damage as a result of normal trading operations, as the dogs have been guarding said yard for however long, as part of the normal trade.
Just my quick opinion after 2 minutes of consideration...
Training for one of the institutes, but didn't want to go down their helpline route until I had some 'informal' advice from more experienced professionals.
But based on your questions, you should really seek an accountant otherwise you may end up paying more than is needed in tax.
Going off what you have said about the business, it shouldn't cost an arm or a leg, and the tax savings could outweigh the cost of hiring a professional.
Other aspects you may not have considered: private use on the computer equipment, proportion of premises expenses, offsetting any potential losses against employment income if timing is correct.
My answers
@pauld
I'll show you mine if you show me yours...
Cant see how you are getting to work out better, unless I'm missing something obvious and cant see the wood for the trees (which has happened before today)
I get net tax payment of £4
I get net tax payment of £4.7k on £38k salary
As opposed to a dividend tax of £1.6k on salary of £8,000 and dividend of £30,000.
So better of before even taking into account the corporation tax saving on the £8,000 salary
Depends on the exact figures and how you sell it, still possible to be slightly better off even with £40k director. Its all about the income split, and comparing it to the traditional salary/dividend approach.
Very much correct, CT61 are still required for interest payments!
And a tax return will be required to reclaim any tax deducted.
As a side note, it is now possible to get £21k out of your company tax free.
@Cheekychappy
I have a lovely poodle if you ever fancy different company to FirstTab when you take your dog for walks.
He is quite old now though, so not sure he can manage it too frequently however.
illegal
Could possibly be illegal however to take those shares back without her signing something to say she foregoes the shares when they separated??
My gut feeling is that they are allowable. BIM38540 states
As explained in BIM38530, the costs of civil damages arising as a result of normal trading operations are generally allowable.
equally
BIM42955 states
a payment which is solely for trade purposes and not by way of penalty for an infraction of the law is deductible.
I'd say that a dog bite isn't an infraction of the law so therefore allowable on that front, also it was civil damage as a result of normal trading operations, as the dogs have been guarding said yard for however long, as part of the normal trade.
Just my quick opinion after 2 minutes of consideration...
I know I was a bit vague, partly due to knowing open forums can be viewed by most.
As I said, the legality wasn't something I wanted to focus on initially but as it maybe relevant, an example of the transaction is:
Executor (A) uses Estate agent (B) to market the property who sells to person (C)
There is a family relation between A & B and B&C (not talking employee/cleaner level).
B loans C money to purchase.
Training for one of the institutes, but didn't want to go down their helpline route until I had some 'informal' advice from more experienced professionals.
No offence
But based on your questions, you should really seek an accountant otherwise you may end up paying more than is needed in tax.
Going off what you have said about the business, it shouldn't cost an arm or a leg, and the tax savings could outweigh the cost of hiring a professional.
Other aspects you may not have considered: private use on the computer equipment, proportion of premises expenses, offsetting any potential losses against employment income if timing is correct.