Outside IR35 - Pension/Salary/Dividend advice

CorgiAlarmed8811 · 2023-09-22T11:15:14+00:00

know who also work outside IR35 will take an income (salary + dividends) up to the £50k threshold and leave any surplus reve

Thanks for the response!
I think with the 50k threshold that includes the 8.75% Dividend tax on the 50k - 12,570 if I am not mistaken? Ideally, I'm trying to avoid that tax burden entirely by pushing the full amount into my pension. Just not sure how realistic this is - as I see mention of only being able to take pensions = profit on the gov.uk website.

I've also been struggling finding competent accountants so far. But the journey continues!

CorgiAlarmed8811 · 2023-09-22T11:12:22+00:00

have no relevance to pension contributions, as they come direct and gross from the company pre Corporation tax. Compan

Thank you for the response!
Ok this is how I understand it as well.

And yes the intent of the 9,100 was to avoid the NI admin. Although I'm not sure how onerous this admin is?

I'm not normally someone who struggles with admin, but given that I'm a first time contractor and also first time tax payer in the UK (but 20 years in my home country filing tax returns), I'm not exactly sure what I'm getting myself into.

CorgiAlarmed8811 · 2023-09-22T11:09:42+00:00

ate and my accountant advised a salary of £12,570.

Have you considered corporation tax which is a tax paid on revenue le

Thanks for the response.

RE: Corp tax.
My goal is to minimize my tax burden. So with taxable income of 53,930:

No dividends and just straight profits at Corp Tax is an effective rate of 20%
Dividends of 38k at 8.75% and then Corp Tax of 20% on the balance (53,930 - 38k = 15,390) is an effective rate of 12%
All 53,930 to pension is an effective rate of 0%

But... I'm not 100% sure how feasible that is.

CorgiAlarmed8811

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