business owners - income tax calculators

[loosemarbles]

for business owners, can anyone recommend an income tax calculator that can work out the most tax-efficient way of taking income, dividends, income distribution to a spouse, BIK etc?

Clearly appreciate that an accountant is a great way, and I have plenty of those, but looking at research at this stage. I could build it of course ...

[worsy]

Have a search for "good calculators".

[Mortgage_tom]

I think this is the best one for salary:

https://listentotaxman.com/


Not sure which is the best for dividends & salary split. But this one seams to work, but lacks pension & student loan functions:

https://www.itcontracting.com/calculators/dividend...

One which has functionality for multiple ltd companies & NI would be nice.

Edited by Mortgage_tom on Thursday 7th November 13:09

[trickywoo]

Mortgage_tom said:

https://www.itcontracting.com/calculators/dividend...

I use that too. Good resource.

Generally you are best maxing your pension with what is comfortable and obviously legal.

Then PAYE below the NI threshold and dividends for the rest.

Spouse can be useful especially if they are not currently employed / using their tax free allowance otherwise.

[Jockman]

trickywoo said:

I use that too. Good resource.

Generally you are best maxing your pension with what is comfortable and obviously legal.

Then PAYE below the NI threshold and dividends for the rest.

Spouse can be useful especially if they are not currently employed / using their tax free allowance otherwise.

There is no legal limit on pension contributions. Only a limit on tax relief

[trickywoo]

Jockman said:

There is no legal limit on pension contributions. Only a limit on tax relief

Indeed but there isn’t much point tying up money in a pension unless you get tax relief.

[Jockman]

trickywoo said:

Jockman said:

There is no legal limit on pension contributions. Only a limit on tax relief

Indeed but there isn’t much point tying up money in a pension unless you get tax relief.

Yup. The tax relief doesn't even have to be yours. Same as you allude to regarding paye.

[loafer123]

Mortgage_tom said:

I think this is the best one for salary:

https://listentotaxman.com/


Not sure which is the best for dividends & salary split. But this one seams to work, but lacks pension & student loan functions:

https://www.itcontracting.com/calculators/dividend...

One which has functionality for multiple ltd companies & NI would be nice.

Edited by Mortgage_tom on Thursday 7th November 13:09

Surely the latter should take Corporation Tax into account?

[trickywoo]

loafer123 said:

Surely the latter should take Corporation Tax into account?

Not really worth the bother because paying NI from a personal point of view and then also from an employer point of view is clearly not worth it under the current rules.

[loafer123]

trickywoo said:

loafer123 said:

Surely the latter should take Corporation Tax into account?

Not really worth the bother because paying NI from a personal point of view and then also from an employer point of view is clearly not worth it under the current rules.

I suppose my point is that you can only pay yourself a divi when you have already paid CT, surely?

[trickywoo]

loafer123 said:

I suppose my point is that you can only pay yourself a divi when you have already paid CT, surely?

Yes but CT is ‘only’ 19% and you’ll be paying more than that in NI.

[loafer123]

trickywoo said:

loafer123 said:

I suppose my point is that you can only pay yourself a divi when you have already paid CT, surely?

Yes but CT is ‘only’ 19% and you’ll be paying more than that in NI.

Surely that advances the benefit of an LLP, and not a corporate with divis?