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UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Archer on May 11, 2010, 09:06:20 pm

Title: paying 40% tax
Post by: Archer on May 11, 2010, 09:06:20 pm

am i right in saying if you earn £38k and above you pay 40% tax


what can you do to reduce what you pay in tax


any advice would be super.

Title: Re: paying 40% tax
Post by: williamx on May 11, 2010, 09:09:43 pm

Don't earn more than 38k ;D


or go LTD

Title: Re: paying 40% tax
Post by: daz1977 on May 11, 2010, 09:10:03 pm

you should only pay that if u r drawing that as a wage,  the only way u cant pay that amount in tax is not to draw 38 grand, (its 40 on anything over 38 grand  22 up to 38 grand)

it all depends on how u r running ur business, and i take it from the size of urs ur are not a sole trade but a ltd proper business and drawing a wage,   u coudl split ur wage between u and ur wife if she int working,  to help cut down on the tax

Title: Re: paying 40% tax
Post by: Archer on May 11, 2010, 09:16:34 pm

Yes i am ltd, but my missus works

Title: Re: paying 40% tax
Post by: daz1977 on May 11, 2010, 09:18:23 pm

if ur drawing it as a wage then   the only thing i think u can do is go self employed and sub contract on a cis card, but i dont know who that would work with u being a director

so start paying ur self in cash

Title: Re: paying 40% tax
Post by: chopsie on May 11, 2010, 09:21:08 pm

if you are earning that much you must have an accountant? if they are any good they will surely be able to help you cook your books err i mean suggest ways of reducing your tax bill

Title: Re: paying 40% tax
Post by: williamx on May 11, 2010, 09:23:25 pm

are you just taking a wage out of the company or are you paying yourself a wage and dividend.

Title: Re: paying 40% tax
Post by: Archer on May 11, 2010, 09:24:48 pm

wage and dividend

Title: Re: paying 40% tax
Post by: williamx on May 11, 2010, 09:26:32 pm

you could sell your house to your company

Title: Re: paying 40% tax
Post by: daz1977 on May 11, 2010, 09:27:02 pm

go see ur accountant,   pay ur self 38 wages and the rest in dividands as the company will pay 20 % on these

Title: Re: paying 40% tax
Post by: Ian101 on May 12, 2010, 02:50:09 pm

cant wait till I have to pay 40% tax  ;D

Title: Re: paying 40% tax
Post by: martinsadie on May 12, 2010, 07:33:29 pm

i wouldnt mind paying all that tax  ;)