I was just running though this in my head and did a search and got
confused.
If I'm a sole trader and am making say, £100,000 in a year - what are
my best options to pay as little tax as possible?
Normally a limited company, but in some cases a sole trader is better.
I always assumed that if I made a limited company the money wouldn't be
taxed on the way in and I could pay myself a yearly wage and ride it
just under the higher tax bracket.
But in my searching it appears that I would in fact pay tax on the
money entering the company too - meaning that I'd kind of be taxed on
both ends.
Is this right? If so - why bother registering as a limited company?
You pay corporation tax on the profits, in this case 19%. Any salary you
pay yourself is generally allowed as an expense against the profits. You
pay tax and NI on the salary if it is above the personal allowance, and tax
on the dividends if it is above the higher rate band.
.
Re: anyone know any good truck driver newsgroups? ... Besides, if I did, like you, harden my heart to the world around me, those two would in fact soon pass away, and guess who'd have to heal my wife's grief, who'd have to pay for the burials and settle their outstanding bills.... I worked in the field for many years; I have been CFO of a Texas corporation auto dealership; I operated my own bookkeeping and tax service for six years. ... As to the wife's substantial earnings: if you have used even a nickel of it for living expenses and/or investments, then this alone negates your entire argument; that anyone can become a millionaire in a few years on even a trucker's earnings. ... (misc.transport.trucking)
TURMEL: Brantford Chamber of Commerce Survey ...Bank of Canada which does not need to pay interest to any ... interest on the mortgage debt for his practice. ... municipalities collect tax up front, ... (sci.econ)
Re: The poor rich work harder ...wage earners pay half the taxes but make only a third of the income.... Think a tax system which ignores the individuals is fair, ... (soc.retirement)
Re: Fairtax: how does this math work out? ... As> I understand it, they want to get rid of the income tax altogether, and> raise the sales tax on items to 23%. ... They argue that low income, medium income, and high> income families will all benefit from lower taxation, while the> government will be able to increase the revenue it brings in from> taxation. ... If he doesn't pay that income tax, but instead goes broke by spending every single penny of that 30 million in the economy, he would still end up contributing 5.3 million dollars less to the government than he would under the income tax system. ... The answer is that it would appear that the wealthy would pay less than they do now in taxes.... (misc.taxes)
Re: anyone know any good truck driver newsgroups? ...tax paid by millionaires. ... don't you believe a millionaire should pay income taxes??? ... If a working man has $5 leftover after paying for those things that he must have in order to survive, and a Bill Gates has $20 million leftover per week after paying for his outrageously expensive lifestyle, is it fair that they both pay the same tax rate? ... Do I need to produce a listing of all the millionaires who paid ZERO tax last year? ... (misc.transport.trucking)
