Best way to extract £40k from company ?

[Batra Ventures UK Limited]

Whats the best way to extract £40k over a 12 month period from a company ?

I think it as:

£34800 as wages, taxed at 20%

£5200 as dividend, taxed at 10%

Please could somebody confirm this ?

[Faith28]

Where's your accountant gone?

Assuming you have no other income (or company gifts etc) - looks sound from a layperson's perspective with basic tax knowledge.

[Batra Ventures UK Limited]

Where's your accountant gone?

Assuming you have no other income (or company gifts etc) - looks sound from a layperson's perspective with basic tax knowledge.

Unfortunately my accountant isnt avialable at 2300hrs on a sunday. lol

[Atilla]

would this be from your own company?

[Batra Ventures UK Limited]

would this be from your own company?

Wouldnt make a difference would it ?

[David Griffiths]

Whats the best way to extract £40k over a 12 month period from a company ?

I think it as:

£34800 as wages, taxed at 20%

£5200 as dividend, taxed at 10%

Please could somebody confirm this ?

I can confirm that's probably close to the worst way.

Interesting to know why you ask a question about extraction over 12 months, but feel unable to wait 12 hours to check with your accountat.

[Atilla]

Wouldnt make a difference would it ?
In your case, yes, i do believe it would. :cool:

[Batra Ventures UK Limited]

I can confirm that's probably close to the worst way.

Interesting to know why you ask a question about extraction over 12 months, but feel unable to wait 12 hours to check with your accountat.

Was doing some calculations and thought it might be helpful to get an idea first.

From memory I remeber the best way advised was to take personal allowance as wages and rest as dividend.

However if we pay 20% on wages it reduces the net profit of company which is taxed at 21%, techinically saving 1% ?

I am confused :|

[Faith28]

You're forgetting National Insurance to add on ..isn't that 11% on top? Need an accountant to confirm ;)

[Batra Ventures UK Limited]

You're forgetting National Insurance to add on ..isn't that 11% on top? Need an accountant to confirm ;)

Thanks I keep forgetting. LOL

[Logistika]

Whats the best way to extract £40k over a 12 month period from a company ?



This may sound a silly idea, but ask Labour Relations Agency to confirm it, albeit withholding certain pertient facts.

If you have a good friend who has a girlfriend in her first trimester:-
1. manufacture a letter of offer of employment, and engage her under PAYE.
2. Then have a letter from her informing you she is pregant
3. Then sack her for not being able to fulfill her duties due to her parasitic condition
4. Get her to threaten an employment tribuneral
5. Pay her off because of your misdeeds
6. Give her 10% for her trouble and pocket the cash.

I'm sure you and she could string it out for a few months ;)

I know it sounds daft, but its realistic. A pregnant woman doesnt have to employed 2 yrs before having full maternity rights, and reasonable compensation is not taxable on the recipient. Besides if she is pregant, she wont use all her tax allowances anyway.

[oldeagleeye]

You keep refering to the company OP. If it is a limited company you have got your figures all wrong.

Max personal allowance as director salary (approx 6K. No tax or NI.

Then 34K in dividends again no tax but in theory you are getting a notional 10% rate by way of a dividend voucher or credit.

BTW.My out of hours FEE. £100 quid