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Where Taxpayers and Advisers Meet

Is it worth keeping my limited company?

bobbybobson
Posts:15
Joined:Mon Aug 31, 2020 10:53 am
Is it worth keeping my limited company?

Postby bobbybobson » Wed Jan 20, 2021 1:49 pm

My income has now dropped to £30,000 with £10,000 expenses, so I would like to know if I would still save more through keeping the limited company, provided I pay myself under the allowance so as not to pay NIC?

LIMITED COMPANY:
£30,000 (earnings) - £10,000 (expenses) - £12,500 (salary and dividend) = £7,500
19% of £7,500 = £1,425 tax to pay
£1,425 total to pay

SELF ASSESSMENT:
£30,000 (earnings) - £10,000 (expenses) - £12,500 (salary and dividend) = £7,500
20% of £7,500 = £1,500 tax to pay
NI = roughly £2000
£3,500 total to pay

Is this roughly correct?

Thanks!

bobbybobson
Posts:15
Joined:Mon Aug 31, 2020 10:53 am

Re: Is it worth keeping my limited company?

Postby bobbybobson » Wed Jan 20, 2021 2:52 pm

I meant.... £12,500 (allowance) for self assessment

bobbybobson
Posts:15
Joined:Mon Aug 31, 2020 10:53 am

Re: Is it worth keeping my limited company?

Postby bobbybobson » Wed Jan 20, 2021 4:10 pm

With a dividend of £2000 (no tax)

bobbybobson
Posts:15
Joined:Mon Aug 31, 2020 10:53 am

Re: Is it worth keeping my limited company?

Postby bobbybobson » Wed Jan 20, 2021 5:57 pm

No worries... I've got the correct calculations now.


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