First time I've ever understood this! Thank you :)

@HeelanAssociates

Жыл бұрын

Glad it helped make sense!

Thanks for the video mate. I'm tempted to go for a mix of salary/dividends with our new brand launching this year. Great advice

@HeelanAssociates

6 ай бұрын

Glad it was helpful! Best of luck with the launch!

Hi Dan. Thanks for the video. I got slightly confused with all the percentages. For the info graphic you showed at the end showcasing the different tax scenarios for the £40k income. Can you explain the breakdown of the tax percentages please? - i.e. Salary only 29%?, Dividend only 22%?, Mix 18%?

@HeelanAssociates

Жыл бұрын

Its been a while since we did this video so had to remind myself.... but that's the total tax bill as a % of £40,000. So example, although basic rate tax is 20%, and NI at the time of recording was 12% (so 32%), you have thrown in the mix personal allowances and thresholds where you don't pay tax. This means your overall tax rate is lower than this.

Great video. Does the individual pay the tax on their dividends during their self assessment or is it paid by the company?

@HeelanAssociates

7 ай бұрын

It’s personal tax so the individual. We done lots of video on dividend, have a check on the playlist should help some more.

Thanks for these amazing videos, Are investments in the business classed as profits? So if I were to get SEIS investment, can I use a dividend structure?

@HeelanAssociates

3 жыл бұрын

Could you expand on this a little more? Glad you enjoyed the vids!

@forgot53

3 жыл бұрын

@@HeelanAssociates thanks for the reply, I meant if I were to recieve £150,000 for example in seed funding, would I be able to pay this to myself through dividends? Or would you have had to pay tax on it first?

Great video. How much take home pay will I get if my company makes £240k profits per annum? I'd be taking a mix a salary and dividend as the sole owner.

@HeelanAssociates

3 жыл бұрын

Bit of a long one to answer in a comment, but lets the answer is 'vastly more than if you did this all through PAYE salary' :- ) So much depends on your situation, whether you'd need to take all at once, whether you could split the salary, whether you wanted to contribute to pension etc.

Hi, Do shareholder's pay dividend tax individually or is dividend tax taken as a total over the tax year? So would 2 shareholders be able to take 37k at 8.7% each or is it 74k at the higher rate of 33.7%?

@HeelanAssociates

Жыл бұрын

It’s taken over the tax year, and total bill is paid individually, at whatever the applicable rate is to them. For example you might have one shareholder with no income at all, so could take say ~50£k at the ‘cheap’ rate, where as another shareholder already earning £60k in another job, they are likely (dividend allowance aside) to pay the higher rate on every penny.

Great video thanks- couldnt wrap my head around why the there was no corp tax when taking a max salary until you said it was an allowable deduction

@HeelanAssociates

Жыл бұрын

Glad it helped!

Would my accountant take care of all this if i had my own company?

@HeelanAssociates

2 жыл бұрын

If they are decent yes. Accountants vary wildly on how they support with this, but most decent ones should provide at least a basic opinion on how you should best pay yourself tax efficiently!

Do you need a national insurance number if you only take dividends from a uk company?

@HeelanAssociates

10 ай бұрын

NI numbers are really related to dividends, but you may need an NI number to register for self assessment, which is needed to declare the tax.

Hi Sir, I have part time job as a staff nurse in NHS hospital. I do agency in other hospitals approx 2 days a week and get paid as PAYE via Umbrella Company. I want to change to do limited company. I have some doubts 1) Will I qualify as a limited company while working as permanent NHS staff? 2) Is there different laws for northern Ireland 3) I make around £800 per week before tax, how much would it cost approximately for accountancy. Thanks in advance

@HeelanAssociates

Жыл бұрын

Hi, Sadly these are too difficult to cover in a comment, but some general thoughts 1) You'd have to consider employment status issues (sometimes the tax issues are referred to as 'IR35' considerations) 2) Tax wise it's part of UK 3) Accountancy costs usually aren't linked to income, it's linked to the work required for the company. This may help: kzread.info/dash/bejne/dWh_kq-if9avorg.html

If you are employed FT on around £40k PAYE what tax and NI would you pay on any salary payed by your Ltd company is it just cumulative

@HeelanAssociates

3 жыл бұрын

Do you mean if you had a side business that was a LTD and you wanted to pay yourself from there?

@brickers911

3 жыл бұрын

@@HeelanAssociates yes thats right

@HeelanAssociates

3 жыл бұрын

@@brickers911 Then in that case you probably wouldn't pay salary from your limited, you'd probably just pay dividends. First £2000 would be tax free, rest at either 7.5% or 32.5 depending how much below ~£50k, and how much between ~£50k - £150k Check out this vid: kzread.info/dash/bejne/iHWIt5WKZ9OTZ6g.html

@brickers911

3 жыл бұрын

@@HeelanAssociates That brilliant, great videos BTW

Hi thanks for this video. Me and my wife are equal shareholder in my pvt ltd company. In this case do we both receive equal dividend or can I pay her more dividend than myself?

@HeelanAssociates

8 ай бұрын

If you have the same ‘class’ of shareholding you have to pay in proportion to holding (usually). It is possible to create other classes to pay dividends in different proportions (ie you can declare different amounts for different classes).

@desimusic1

8 ай бұрын

Thanks

You dont have to pay nat insurance. Its voluntary contributions.

@HeelanAssociates

Жыл бұрын

If only ;)

Does anyone know if i can put money back into my personal account from my business account if i only put it in there temporarily as i didn't have enough money to buy tools with now i do have enough money in my business account can i just pit it back without it being dividends?

@HeelanAssociates

2 жыл бұрын

If we are talking limited companies, yes generally. This might help, you've effectively created a Directors Loan: kzread.info/dash/bejne/npqHqNurgt3giNo.html

the first £2000 of dividends is taxed at 0% actually, your editing of the video has lead to this inaccuracy

@HeelanAssociates

2 жыл бұрын

We generalise a lot in these videos, it helps most people to understand easier. Technically yes, you are 100% correct.