Am shareholder & director of small ltd co.
Now in 3rd year and started making profits so looking into paying smaller salary (£5035) and balance of income as dividend.
As far as I make out this saves all income tax, personal and company NI but dividend will be taxed at 19% at the end of the year.
My wife is concerned that dropping off the Inland Revenues radar like this will lead to investigation plus she is concerned that by not paying NI that I will not get a state pension and could be refused NHS treatment?
We are also concerned that we are missing something vital here as this seems to be quite a loophole. I dont want to get stung for a big tax/ NI bill down the line.
Can someone allay our concerns?
many thanks
Neil
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