Dividend or salary and other tax-free benefits

[Incredulum]

I haven't done one of these since I last sat an exam, so I'd be grateful for any tips.

An individual sets up a company through which advice is provided. It is likely that some of this advice will be IR35able, but most will not. Annual turnover probably about 30k.

1. The salary v dividend equation. Is this as simple as paying salary up to the secondary NI threshold of £7,072 and dividends thereafter? Any benefit to paying more salary?

2. Pensions. Can you make pension payments out of dividends these days? Or is it easiest for the company to make the payments directly?

3. IR35. I think I'm right in saying that if receipts from contracts falling under IR35 are less than salary/pension/5% deduction, then there's no need to worry about IR35. (I am aware of the calculation but just checking if a quick read has come up with the right answer.)

4. Getting cash out tax free (or cheaply). I think most of the sensible benefits have disappeared these days. The following come to mind:

a) Refreshments provided to all staff. What when there is only one staff member?
b) Lunch costs when working away from the home office.
c) A deduction for nominal home office costs of apprently £3 per week.
d) Mileage on owned car (or a company-owned van/low emissions car/classic car worth under (?)12k...)
e) Can you have an annual party when there's only one director and no other staff?
f) A mobile phone (provided it doesn't do personal emails - if it does, are you allowed to reimburse your employer for a sensible proportion?)
g) Luncheon vouchers of up to 3/- per day.

Any more?

Thanks, as ever.

[tom 7000]

1) no
2) either
3) are you sure its ir35 - not manty these days are
4a
b tean and coffee maybe biscuits
c debateable
d yes or work out a fair apportionment
e yes 45p a mile
f 100%
g do they still exist - dont be silly never seen any in 20years

[tom 7000]

4 oops slipped

a tea and coffee maybe biscuits
b debateable
c yes or work out a fair apportionment
d yes 45p a mile
e yes and he invites his wife and clients if he wants £150 all up
f 100%
g do they still exist - dont be silly never seen any in 20years

[Incredulum]

Tom, thanks.

3. Absolutely certain that it would be IR35. Two days a week on a four year fixed contract.

4f - 100% what? do you mean if it does emails (and is thus classed by HMRC as a computer) that the employee has to reimburse the company 100% of the cost?

4g - I did joke, but a colleague of mine (who has been here forever) actually gets LVs of about £1 per day, 15p tax free...