Re: double tax on investment ?

In article <4M7Ii.17060$c_1.6539@xxxxxxxxxxxxxxxxxxxxxxxxxx>,
no.spam@xxxxxxxxxxxxxxxxxxxxx says...
Howard9 wrote:

In article <2F3Ii.37447$mZ5.19650@xxxxxxxxxxxxxxxxxxxx>, mike-at-
home@xxxxxxxxxxxxxxxxxxxxxxxxxx says...

Yes because the money he put in as share capital is not distributable.
Althought it is more likely that the comapny is taxable on the money and
he woudl receive it net.

Can I pursue this with you Mike ? ... if he pays himself he will be an
employee... so in what way would the company take on the burden of the
tax ?

I think what he means is, instead of the company paying him £2k gross
per month and him paying tax and NI on it (in addition to the company
paying employer's NI), that the company would pay him a bit more, just
enough so that after deduction of tax and NI, which it would still be
the employee's responsibility to pay, it would leave him taking home
£2k net.

Yes, ok... see what you mean.

I wonder what the rationale of this situation is - in terms of double
taxation.

The person puts in his already taxed income - and has to pay tax
again....

--
Howard
.

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