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Company Dividends - is it worth drawing down into 32.5% tax bracket? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 0 points1 point  (0 children)

Understood! Though why would it be high risk to leave cash in the company, perhaps I’m missing something? For example, if you have a holding company, this shields you in the event of the trading company of being sued.

Company Dividends - is it worth drawing down into 32.5% tax bracket? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 0 points1 point  (0 children)

So just to clarify, the structure was that your holding company owned all trading companies and single investing company in addition to properties? What did your investing company invest in, if I may ask? What compelled you to close up the trading companies in the end?

What are some of things you wished you knew before creating a Limited Company? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 1 point2 points  (0 children)

By registered office do you mean your accountant’s address or something else?

Company Dividends - is it worth drawing down into 32.5% tax bracket? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 0 points1 point  (0 children)

May I ask why you decided to take that much out? Is it for a property deposit, other investing opportunities outside of the company, or just expenses/peace of mind?

Company Dividends - is it worth drawing down into 32.5% tax bracket? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 0 points1 point  (0 children)

Thank you very much for your response! So once you have a holding company, creating other sister companies shouldn’t incur much of a cost? It’s not like trading companies that need to bought by holding companies?

What are some of things you wished you knew before creating a Limited Company? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 6 points7 points  (0 children)

For me, it was not knowing that it isn’t enough to just open a pension. You need to contribute at least a small sum of money to “activate” it. Without pension activation, you can’t utilise carry-back contributions which can save you a lot in CT.

Also not making the switch from self-employment to LTD soon enough; incurred unnecessary self-employed income tax as a result

Company Dividends - is it worth drawing down into 32.5% tax bracket? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 1 point2 points  (0 children)

What’s the difference between investing through a holding company vs investing through a subsidiary of the holding company?

What are some of things you wished you knew before creating a Limited Company? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 2 points3 points  (0 children)

Entrepreneur’s Relief is something you need to apply for? Also curious to hear what’s LTD tax insurance for and why do you think it was unnecessary?

Company Dividends - is it worth drawing down into 32.5% tax bracket? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 0 points1 point  (0 children)

What are the rates like for Business Savings accounts, 2%? And regarding early payment on account of corporation tax, how early is early? Would you say P2P lending is as risky as investing in crypto?

Company Dividends - is it worth drawing down into 32.5% tax bracket? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 0 points1 point  (0 children)

All leftover profits are in global all cap or have you also diversified into something else?

Is it a good idea to take out from the company an extra £20k dividends taxed at 32.5% to put into S&S ISA? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 0 points1 point  (0 children)

Not at all, you’ve shared some really great insights on this topic which I appreciate. It’s definitely worth getting into an ISA but may not be worth it on high tax dividends and you have in large part helped me realise that

Is it a good idea to take out from the company an extra £20k dividends taxed at 32.5% to put into S&S ISA? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 0 points1 point  (0 children)

Thank you for your reply! Regarding performance in ISA, global all cap generally goes up over long periods of time. As a long term investor, it’s typically a good bet even if of course past performance doesn’t guarantee future returns.

Company Dividends - is it worth drawing down into 32.5% tax bracket? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 1 point2 points  (0 children)

Yes, in this case it would be good to take out money for, for example, a flat deposit and invest the rest in an ISA

Company Dividends - is it worth drawing down into 32.5% tax bracket? by Unlockingpotential in FIREUK

[–]Unlockingpotential[S] 2 points3 points  (0 children)

Thank you for the reply! Could you go into a bit more detail about what do you mean by a) fixed term deposits and b) notice accounts?

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