Starting a Limited Company, first timer

[Jantra]

thanks for the reply all

i'm not VAT registered as medics dont need to be
i tend to work for one to two different clients each day so IR35-wise i'm sure i'm safe

i wanted to pay myself 6440 and my wife 6440 and pay the rest to ourselves as dividends

will your wife be earning this money or will it be simply to minimise tax - be careful!!!

only thing is the wife has a student loan on her head and i don't want to be in a position where she has to start paying it back
the rules go something like if she earns more than 15k she has to pay 9% back, which is a hefty amount
does anyone know how i can get around this?

you can't, earnings are earnings - you cannot have the penny and the bun. if you want to minimise tax fair enough, but you may therefore have to pay back your wife's loan.

if i pay myself more dividends i will breach the dividend income 37400 threshold and have to pay dividend tax after already paying corporation tax so thats not a way out. i also dont want money sitting in the company as i need it, so thats not a way out either

divs are taxed at the marginal rate of the tax payer. you'll earn personal allowance tax free, the divs will be tax free up to 37,400 then after that they will be taxed at 40% (but you receive a tax credit of 10%)

also about the dividend income threshold, does that mean if my total income (earnings plus dividends) reaches 37400 or is it just dividend income (as suggested by the name?)

as above

[Incredulum]

home costs are allowable in the form of use of home as office. They have to be reasonable costs incurred and include

rent (not mortgage interest)

I wouldn't claim to be an expert in this area, but TB79 appears to suggest that no deduction should be claimed for rent either.

http://www.hmrc.gov.uk/bulletins/tb79.pdf


Intriguingly TB79 also includes the oft-quoted, but never (in my experience) justified by posters here £2 per week flat rate claim.

[Jantra]

Incredulum

isn't that where an employee works at home which is not their normal place of work? Isn't this different from a limited company claiming a fair proportion of home costs due to it being registered offiec/trading address etc etc etc

[Incredulum]

There is a house owned by OP.

There is a company for which OP works.

How do you suggest the company obtain a tax deduction for expenses incurred by OP?

[Generix]

thanks for the reply all

i'm not VAT registered as medics dont need to be
i tend to work for one to two different clients each day so IR35-wise i'm sure i'm safe
thanks

What service exactly will you be selling (and to what types of customer (i.e. local GPs, hospitals, corporates etc)?

[Jantra]

There is a house owned by OP.

There is a company for which OP works.

How do you suggest the company obtain a tax deduction for expenses incurred by OP?

fees for use as registered office?

if such a a transaction existed between the company (tenant) and the OP (landlord), it would be reflected appropriately in the accounts.