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Where Taxpayers and Advisers Meet
Bonus Payments
-
timbeardsmore@hotmai
- Posts:1
- Joined:Wed Aug 06, 2008 3:02 pm
Your question is very vague and general, I can only throw a few ideas that might apply to you.
If you are also a shareholder of the company, take out a dividend instead. As long as you are below the 40% income tax threshold, there should be no additional tax to be paid.
Alternatively, if you have acess to a pension plan, you can forego the bonus, with the latter going into the employer pension plan. That way, it works both for the employer and you beneficially.
Finaly, if you are a director consider taking the money as a loan from your company. Up to £5000 is permitted by the law and there is no benefit in kind taxable. Obtaining short term loans from their companies is a very cheap way of financing for directors of private limited companies.
If you want a more detailed answer let me know.
hope this helps.
Demetris Savva BA FCCA
constantinesavva@accamail.com
http://www.tax-accounting-london.info
If you are also a shareholder of the company, take out a dividend instead. As long as you are below the 40% income tax threshold, there should be no additional tax to be paid.
Alternatively, if you have acess to a pension plan, you can forego the bonus, with the latter going into the employer pension plan. That way, it works both for the employer and you beneficially.
Finaly, if you are a director consider taking the money as a loan from your company. Up to £5000 is permitted by the law and there is no benefit in kind taxable. Obtaining short term loans from their companies is a very cheap way of financing for directors of private limited companies.
If you want a more detailed answer let me know.
hope this helps.
Demetris Savva BA FCCA
constantinesavva@accamail.com
http://www.tax-accounting-london.info
