Money left in Ltd Cy = what to do with it ?
Discussion
Wife and I are likely to finish the year with £15k or £20k worth of profits that we can't pay ourselves with in dividends as it would tip us both in the 40% bracket thingy. Or 32.5% Dividend tax thingy whatever.
We don't actually need that money. What shall we do with it ?
Can the Company pay it in a pension scheme ? How easy is it to set up ? I happen to have a personal pension scheme too, could the Cy pay into that ?
What's the more efficient way fiscally ?
Who should we speak to ?
Thank you !
We don't actually need that money. What shall we do with it ?
Can the Company pay it in a pension scheme ? How easy is it to set up ? I happen to have a personal pension scheme too, could the Cy pay into that ?
What's the more efficient way fiscally ?
Who should we speak to ?
Thank you !
Exactly, Corporation Tax is payable on the company profits. If there is £20,000 sitting in the company bank account, the assumption has to be that the company has made at least £20,000 in profits.
Has the factored in the 20% Corporation Tax bill that the company needs to pay on whatever taxable profits it did make?
Has the factored in the 20% Corporation Tax bill that the company needs to pay on whatever taxable profits it did make?
Is there something the business needs, perhaps new equipment or such like?
Maybe something that you can use to improve productivity.
Items that retain reasonable value are also good as you can sell them if you require the equity back.
Depends on the nature of your business of course.
Have you spoken to your accountant?
Maybe something that you can use to improve productivity.
Items that retain reasonable value are also good as you can sell them if you require the equity back.
Depends on the nature of your business of course.
Have you spoken to your accountant?
Gassing Station | Finance | Top of Page | What's New | My Stuff