maximizing pay

Thread: maximizing pay

  1. EvilBoB's Avatar

    EvilBoB said:

    Default maximizing pay

    OK - It's come time for me to run a payroll for my company but I'm a little confused by the way it works so can someone please help here... I'll use example figures

    Let's say I get paid 1200 for a weeks work (odd number but it's the random one I chose for my figures and as the number changes I can substitute where necessary week by week).

    Invoiced amount : 1200
    211.53 - PAYE - based on 11000 per year (tax and NI exempt)
    70 - Expenses (fuel)
    Total take home : 281.53

    918.47 profit

    96.16 dividend allowance based on 52 weeks leaves 822.31
    57.57 tax @7% on dividend leaves 764.74

    Total take home : 1046.27

    Does this sound right to you guys? It's all a bit confusing but I'd rather use an online payroll system and do it myself than faff around with expensive accountants for what "should" be a simple process. If it is right is there a better way to do this?
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  2. BertRoot's Avatar

    BertRoot said:

    Default Re: maximizing pay

    Do what I do. Pay an accountant. Much easier and saves me having to arse about.

  3. DavidF's Avatar

    DavidF said:

    Default Re: maximizing pay

    Ex's seem a bit low lol. Heating, eating, rent...the lot anything that can be an expense used for your business is "allowable".
    Anyway in answer to your question - have a look here for a good starter. [Only registered and activated users can see links. ]
    And dont forget corp tax in your 2nd year onwards - [Only registered and activated users can see links. ]
    with all that said it IS still more efficient to pay yourself in this way...although the vultures are circling. Im sure Hopnobby ? (Probably spelt his name wrong) would be able to give you a much better answer, I seem to remember him being an accountant. TBH as a SE electrician I just bung it over to the accountant and he more than pays for himself in what HE saves me that I would never have found out about/thought of.
  4. BertRoot's Avatar

    BertRoot said:

    Default Re: maximizing pay

    I would agree with the above. Flat rate VAT gain is gonna drop this year so will lose out on some there if you do that. My accountant has an online time sheet system that I put all days done and what I have spent on food, supplies and mileage and they send me a sheet with what to pay, what to pay as expenses and available divis.

  5. Nathz29's Avatar

    Nathz29 said:

    Default Re: maximizing pay

    Can only echo the above, get a decent account. Let them sort it out.

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  6. hoponbaby's Avatar

    hoponbaby said:

    Default Re: maximizing pay

    I'd say the same but I'm biased ��

    Are you a contractor?
    Any other employees/co. Sec/directors? (Wife)
    Any other shareholders?
    Youve said fuel but are you running a car or van?
  7. Over Carl's Avatar

    Over Carl said:

    Default Re: maximizing pay

    I see this two ways.

    1: Try and become an expert at accounting. This way you can learn every trick in the book, and probably have more dedication to make sure every relevant factor is used to your advantage. Unfortunately doing this seriously may mean you don't have time to keep up to date with new developments in your field, so you may be able to utilise better strategies than any account may be able to offer, but on the flip side you may find your pay (obviously adjusted for inflation) to end up lower than what you get right now which would make the exercise pointless.

    2: Carry on being an expert at what you do, and carry on working harder to get even better to earn even more money. Pay for accountant to use his/her expert skills to help you with your tax, and you carry on refining your expert skills to hopefully make more money next year.

    This simplistic approach obviously ignores the possibility that you are a superhuman genius who can carry on doing the current job, carry on progressing with that, yet somehow gain the same level of accountancy knowledge/skills/expertise pretty much overnight.

    Apologies for the sarcasm, but it's the only way I could think to make my point clear.