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Dividends monthly or quarterly?

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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farazfastian
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Location: London - UK

Dividends monthly or quarterly?

Post by farazfastian » Thu Jun 07, 2007 10:27 am

Hi all,

I've just started doing contracting, I'm the sole director of my limited company taking 12k as salary and rest as dividend. I'm due to apply for extension in April next year, just wanted to know from extension point of view is it better to take dividends monthly or quarterly? or there’s no difference?

Regards
Faraz
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SYH
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Post by SYH » Thu Jun 07, 2007 10:38 am

If you can show that you anticipate taking future dividends by the end of the tax year, It doesn't matter if you do dividends montly quarterly or annually.
By the way, why did you take 12k salary, you could have taken around 5k, I forget what the threshold level is for nic to avoid paying nic taxes
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kck9
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Post by kck9 » Thu Jun 07, 2007 1:41 pm

Hi,

interesting topic, could you please give me some details about the taking salary as dividends and reasons for those, i mean how can you save and how much you can save the tax. I am sorry I have no idea about this concepts. Also I heard that there is some problem if we can claim the salary as dividends as it comes under some IR35 (sorry I completely dont know about IR35). Could you please explain me in detail.

Also do you think can we count dividends under the gross income for HSMP reasons.

Please jot down your view and ideas.

Thanks
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SYH
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Post by SYH » Thu Jun 07, 2007 2:08 pm

kck9 you are kidding, there is no way to jot down what you are asking for
If you do a search for topics that include limited companies, you will see some discussion that cover the area of your questions.
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kck9
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Post by kck9 » Thu Jun 07, 2007 2:33 pm

No worries SYH, I just thought of keep running this thread because, there are so many HSMP people like me who dont know anything about this Limited company services. Thats y I said, atleast this discussion helps in getting some idea.....

Sorry if I am wrong
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farazfastian
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Posts: 211
Joined: Sat May 21, 2005 9:04 pm
Location: London - UK

Post by farazfastian » Thu Jun 07, 2007 4:01 pm

Well SYH is absolutely correct here, its something you can't jot down on this thread. Btw it has nothing to do with HSMP, first you need to decide can you do contracting? If yes then start looking limited company or umbrella company options.

Back to my question, i need more confirmation. Can someone else reply plz.

Cheers
Faraz
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