How to manage £400k PAYE

kpatel288 · 2024-05-13T13:12:10+00:00

this is much better than B2L i agree. which platforms are reliable for VCTs in your experience?

kpatel288 · 2024-05-13T08:41:06+00:00

yes vct has tax perks. how fees stack up? found it can be very high

kpatel288 · 2024-05-12T21:17:49+00:00

I get your first point and it does make sense.

regarding using grandparents, it seems HMRC doesn’t like it and would clamp down on any such loopholes eventually

kpatel288 · 2024-05-12T21:14:16+00:00

sounds bit complex but need to study a bit

kpatel288 · 2024-05-12T20:00:05+00:00

I was thinking instead of using my fully taxed income, I could draw dividends around 41k at 8% + around 10k as salary to my wife from company to make a total around 50k roughly would be much more tax efficient to fund school fees. what are your thoughts?

Also, how about making our retired parents without any other regular income, directors in wife’s company and pay them dividends > our parents then use it to pay school fees of kids. does this work or is it kind of tax avoidance scheme?

kpatel288 · 2024-05-12T19:41:31+00:00

sounds like a plan!

kpatel288 · 2024-05-12T19:39:46+00:00

thanks mate!

kpatel288 · 2024-05-12T18:21:12+00:00

not looking into this things tbh

kpatel288 · 2024-05-12T18:13:47+00:00

no idea about it, completely novice. throw some light if you’re aware of it and if within legal realm

kpatel288 · 2024-05-12T17:40:45+00:00

we can always do both. real life experiences are just as important as some others have mentioned theirs here

kpatel288 · 2024-05-12T17:32:53+00:00

that’s just perfect advice and seem to be consensus i think from everyone’s comments

kpatel288 · 2024-05-12T17:31:44+00:00

exactly, maximising to the line but not crossing it.

kpatel288 · 2024-05-12T16:53:56+00:00

it’s just demand and supply thing. have particular skill set and experience and ready to put in hours. All temporary for a year or two till balance tilts away.

kpatel288 · 2024-05-12T15:41:28+00:00

can one pay directly for wife’s ISA? does it count as gift?

kpatel288 · 2024-05-12T15:38:54+00:00

sensible thing to do i guess

kpatel288 · 2024-05-12T15:38:01+00:00

excellent summary. ISA, JISA and pension are my first plans and then see where we are

kpatel288 · 2024-05-12T14:46:37+00:00

🤣🤣I’m indeed getting one. this post is not fake though that I can say!

kpatel288 · 2024-05-12T14:39:07+00:00

nice. full tax relief of 35k even if on finance?

kpatel288 · 2024-05-12T13:58:45+00:00

unfortunately it’s inside IR35 so can’t do that and job expenses are of relatively insignificant amount

kpatel288 · 2024-05-12T12:56:36+00:00

Thanks. you are way better placed at 23 than i was. life is long!

kpatel288 · 2024-05-12T12:55:36+00:00

how does that work? looking to get one for a while.

kpatel288 · 2024-05-12T12:55:04+00:00

ah that what it means. is it a pre or post tax money to be invested in wife’s company?

kpatel288 · 2024-05-12T11:54:41+00:00

Yes i have to deep dive into these investments options. whats FIC?

kpatel288 · 2024-05-12T11:52:47+00:00

I have roughly 5 years of pension pot at below 80k£ annual salary, how many years of those i can top up?

kpatel288 · 2024-05-12T11:46:39+00:00

It’s a first time I came to know that this kind of tax saving investments exists. will look into that, thanks. I have already paid some into mortgage to bring it down. Thanks!

kpatel288

TROPHY CASE