The life advice thread. Never do, say, eat or drink anything without asking how to do it in here first!
| Guido |
 Posted: Thu, 15/01/2009 - 4:56pm
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Seems that for whatever reason on here the levels of stupidity are rising. I fear for a great many fellow fukers and think that with help from each other we may help guide each other through life.... So you know those stupid questions you dare not ask for fear of looking foolish or maybe you have a situation that you feel the advice and experience of wiser people than you could prove invaluable, then post it here! Maybe we can link the student thread directly to this one? |
| collizhun |
Posted: Tue, 10/07/2012 - 8:42pm
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yeah i get ya. but i couldnt just pay myself £620 a month then use card for the company account to go buy some snouts at londis, go nandos, etc. |
| Jimmy326 |
Posted: Tue, 10/07/2012 - 8:43pm
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i dont think my employer is breaking the law either their a big big company so wouldnt leave themselves open for that sort of thing. PM Bob Diamond |
| Hello World |
Posted: Tue, 10/07/2012 - 8:44pm
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I know people who do the exact as described as above, but they are invoicing multiple people / businesses all the time for their services. |
| collizhun |
Posted: Tue, 10/07/2012 - 8:45pm
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barclays didnt fuck up in terms of employment did they? well if they are breaking the law jobs a good un then? ill just pay this employers NI for now and then kick off later that they didnt employee me fairly? |
| robii |
Posted: Tue, 10/07/2012 - 8:48pm
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If you were right and the company would pay the tax on the dividend. That would mean all the employees could get paid a minimum salary(like £6k/year) and then they could take out hundreds of thousands of pounds in dividends, tax free. Eh? The dividend payment is taken from the profit which you've already paid corporation tax on. So it's not tax free. Why would you pay tax on the money twice? Normal employees don't take dividend payments, shareholder's do. Collizhun would be the sole shareholder in his own company. If he employed somebody they wouldn't be able to take a dividend payment |
| bill |
Posted: Tue, 10/07/2012 - 8:50pm
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true(shareholder bit). But you still wrong about the other bit.... The dividend money does get taxed twice. |
| Hello World |
Posted: Tue, 10/07/2012 - 8:51pm
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http://www.contractorcalculator.co.uk/Limited_company_umbrella_differences.aspx go nuts. |
| bill |
Posted: Tue, 10/07/2012 - 9:03pm
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Robii, if you see the link I posted, there's a section on tax credit. There's a tax credit on dividends which takes the rate down, effectively to zero for basic rate tax payers. (been a while since I done this, I know I paid 25% on my dividends when I was richer than I am now, it's 25% but the rate is actually 32.5% before the tax credit). |
| robii |
Posted: Tue, 10/07/2012 - 8:58pm
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true(shareholder bit). But you still wrong about the other bit.... The dividend money does get taxed twice. This is how I believed it worked - http://www.thisismoney.co.uk/money/article-2095909/How-pay-21-tax-100-000-income-child-benefit--IR35-rules-explained.html |
| robii |
Posted: Tue, 10/07/2012 - 8:58pm
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So which one of us is right?! You pay nothing on the dividend if it's below a certain amount? |
| bill |
Posted: Tue, 10/07/2012 - 9:02pm
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If you're a basic rate tax payer you pay 10% tax on your dividend(but you get a 10% tax credit which wipes it out) If you're a higher rate tax payer you pay 32% on your dividend(effectively25% after the tax credit) |
| robii |
Posted: Tue, 10/07/2012 - 9:04pm
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yeah i get ya. but i couldnt just pay myself £620 a month then use card for the company account to go buy some snouts at londis, go nandos, etc. No, you couldn't put your weekly shop through your company accounts. You just have to put stuff through the company like your mobile phone, lease car, laptop and anything else which you can prove are for business use so as little as possible comes out of your salary. |
| robii |
Posted: Tue, 10/07/2012 - 9:06pm
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If you're a basic rate tax payer you pay 10% tax on your dividend(but you get a 10% tax credit which wipes it out) If you're a higher rate tax payer you pay 32% on your dividend(effectively25% after the tax credit) Right, I didn't know that. I just knew I wasn't paying anything extra on my dividend, so I suppose my accountant sorts out the tax credit stuff. |
| Noble Locks |
Posted: Tue, 10/07/2012 - 9:07pm
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and twixes and chewing gun. |
| San |
Posted: Tue, 10/07/2012 - 9:07pm
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Bill is right. You use the 10% tax credit to zero your dividend tax upto the higher tax rate. Once you fall into 40% tax, you pay the tax rate of 32.5%. |
| robii |
Posted: Tue, 10/07/2012 - 9:13pm
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Effectively you're paying no tax on the dividend then. That's what I'm concerned with, I just didn't know the ins and outs of it |
| San |
Posted: Tue, 10/07/2012 - 9:21pm
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No tax on the dividend upto the £34,370 level 20% tax band(after tax allowance of £8105 has been taken off). Then pay tax on dividend on in higher rate tax band |
| robii |
Posted: Tue, 10/07/2012 - 9:27pm
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Sorry, that should have said "Effectively I'm paying no tax on the dividend then" |
| 6thEdition |
Posted: Wed, 11/07/2012 - 3:26pm
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about 7 of my mates have already booked a flight to ibiza, ive sorted a room for me and two of my mates and was gonna sort flights aswell but they are taking the piss giving me money so i'm just gonna book mine and tell them to sort it themselves. if i bok on the same flight and still checked in same time as the 7 others who have booked we will still be able to be seated together, we don't need to all book as the same party? |
| Noble Locks |
Posted: Wed, 11/07/2012 - 3:29pm
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its like a bus. you sit where you want. |
