How limited company directors can take almost £20,000 tax free each year

Рет қаралды 2,431

3 ай бұрын

In today's video Chartered Tax Adviser Joshua Tharby explains how by using the right allowances you can take almost £20,000 tax free from your limited company.
To find out more about working with Joshua to help you pay less in tax, book a call here - jsmpartners.co.uk/join-us/

Пікірлер: 23

@jordansmith335 3 ай бұрын

You can take more tax-free if the company provides you an electric company car (via maintenance, charging, insurance, etc)

@robertwhite3260 3 ай бұрын

Would a CT61 need to be filled every quarter ?? if so, 20% tax needs to be deducted? and if so, can this be claimed back?

@vitalmakhdum 2 ай бұрын

Might be a Daft question but where is the 6 interest coming from? The company is loaning 100k to the employee or the employee to the company?

@tundeforesythe7554 3 ай бұрын

So can the interest free first 5000 be interst on a directors loan?

@JoshuaTharby 3 ай бұрын

Depending on your other income yes

@tundeforesythe7554 3 ай бұрын

@@JoshuaTharby Thank you for your reply, but i just checked the Gov website and directors loan was not listed under "Interest covered by allowance"

@tundeforesythe7554 3 ай бұрын

@@JoshuaTharby Interest covered by your allowance Your allowance applies to interest from: bank and building society accounts savings and credit union accounts unit trusts, investment trusts and open-ended investment companies peer-to-peer lending trust funds payment protection insurance (PPI) government or company bonds life annuity payments some life insurance contracts

@JoshuaTharby 3 ай бұрын

@@tundeforesythe7554 can you share a link

@tundeforesythe7554 3 ай бұрын

@@JoshuaTharby www.gov.uk/apply-tax-free-interest-on-savings#:~:text=You%20may%20also%20get%20up,rate%20for%20savings%20will%20be.

@sammy_sam_leonardo 3 ай бұрын

I agree very tax efficient! But not completely tax free, as you will of course pay some employer’s and employee’s NI on the salary… and isn’t the interest from the director’s loan taxed 20% at source by the company?

@JoshuaTharby 3 ай бұрын

No employees ni and usually no employers ni as employment allowance. And the 20% tax would be refunded if it’s a long term loan

@sammy_sam_leonardo 3 ай бұрын

@@JoshuaTharby ahh yes you’re right the salary is under the Primary Threshold for employee NI but still get the benefit of it, but looks like it’s above the Secondary Threshold at £758/month so there may be a tiny amount of employers NI due. Ooo interesting, I will look into the 20% refund for long term loans. I need to get this all nailed down before I start paying myself!

@Jeffybonbon 3 ай бұрын

which ever way its dressed up all Directors are paying more tax and I can see a time where dividend tax will be the same as Income tax rates so my guess is total tax take for a 40% tax payer around 60% what a disincentive this is for anyone earning over 50k a year and we live in a low tax country

@JoshuaTharby 3 ай бұрын

I have to say I agree. Over £50k it’s ridiculous

@Jeffybonbon 3 ай бұрын

@@JoshuaTharby The system is rigged and its going to get worse

@rebornsmith7542 3 ай бұрын

£40k pays the kids school fees.

@JoshuaTharby 3 ай бұрын

There are options for school fee planning where you can use the children’s tax brackets

@TomFaulkner-jt2pz 2 ай бұрын

“5K tax free of interest income” can you reference this Josh? I don’t want to call BS, but this doesn’t stack up with my research. . Pleased to be proven wrong….

@JamieNewton-qn5hc 2 ай бұрын

Google 'Interest income starting rate'