Damo_hall:
But there is a lot of tax you can save running through a LTD company over Paye so it seems… I would be paying myself a basic wage then taking the rest out As dividends which is 7.5% after 5000 pound.If i am wrong someone fill me in…
Your biggest expense is travel to work which is now disallowed in most cases. The dividend tax is 20% and will be after £2000 come April. So yes you get to save currently £1000 on income tax if you’re paid out as dividends, soon to drop to £400 but based on a £600 a week gross someone on PAYE gets an additional £3400 in holiday pay and soon £1800 in employers workplace pension contributions.