Thread: Tax in the UK
View Single Post
  #17 (permalink)  
Old 02-19-2008, 11:07 AM
arora arora is offline
Senior Member
 
Join Date: Feb 2008
Location: england
Posts: 257
iTrader: 2 / 100%
Thanks: 0
Thanked 0 Times in 0 Posts
Nominated 0 Times in 0 Posts
TOTW/F/M Award(s): 0
arora is on a distinguished road
Default

Quote:
Originally Posted by bochgoch View Post
I pay 40% tax on my earnings outside of the internet so can't avoid it.

if ur a pvt ltd company - having directors split the dividend gets u into the 20% tax bracket!
eg ur partner & you are directors of a company & making say 30,000/ p.a each - instead of one person making 60,000 p.a & getting into the 40 % tax slab!

so both of you are paying 20 % tax - that's a saving of 20,000 pounds if ur earning 100,000 p.a
Reply With Quote