Tax advice small business owner

[bonusmedia]

Re. pensions and dividends, this sounded interesting...
http://www.cardens.co.uk/dividends-and-pension-contributions/

Of course, they're trying to sign up clients so they don't spell out the detail (and I don't blame them) but the line of reasoning itself is worth a look.

Also very useful, cheers Edwin! Looks like I can save a fair chunk of corporation tax

 

[pberry4032]

I'm not sure this reduces CT, I did ask the question and can't remember.

I can always ask my accountant as he's very good. The whole form are.

 

[bonusmedia]

It would make sense for employer's contribution to be treated as a deductible expense just like salary

 

[Edwin]

Some more really interesting pension stuff here!
http://www.lawdonut.co.uk/law/employment-law/pay-and-pensions/pensions-for-business-owners

Clearly, talking to somebody who knows their stuff about this sort of thing could really pay dividends (see what I did there?)

 

[pberry4032]

Budget 2016: What will the chancellor do to pensions?
http://www.bbc.co.uk/news/business-35668372

 

[Edwin]

And finally this, which seemed to be even clearer...
http://www.contractorcalculator.co.uk/pensions_contractors_limited_company.aspx

(Lots of stuff I didn't know until today, great thread!)

 

[accelerator]

Hey, why be concerned about paying tax, just think about all those poor bankers whose holiday villas you will be helping out with.

 

[Edwin]

Tax planning is more relevant in our industry than most because incomes can yo-yo up and down like crazy because of a big sale or a long dry spell... There are no certainties in domaining, except uncertainty!

 

[baldidiot]

This comes into force in April, you can take dividends at the old rate until then

Could even be part of hmrc's plan - this is going to be a bumper year for tax receipts. I've always thought they should just have a flat rate tax for dividends, the tiered system just encourages people to retain profits.

As a side note for anyone planning on taking out significantly more than they normally do this year, don't forget that it will affect your payment on account in July 2017 - so if you drop your dividends back down in 2016 you'll probably want to file an adjustment, otherwise you'll get hit with a massive bill for income you've not received which you'll then have to claim back.

[not official tax advice - go talk to an accountant]

 

[humble pie]

Sorry to hijack slightly - does anyone here use a SIPP?

 

[pberry4032]

Sorry to hijack slightly - does anyone here use a SIPP?

Not yet but have talked about it for buying a business property

 

[martin-s]

Sorry to hijack slightly - does anyone here use a SIPP?

Yes, but not a 100% flexible one. Mine's with www.hl.co.uk

 

[humble pie]

Trouble is with another global recession around the corner, I'm a bit skeptical about who underwrites these products.. will continue sticking it under mattress like a git.