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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have recently become a resident, looking for work, and was

Customer Question

I have recently become a resident, looking for work, and was advised by the employment agency to set myself up as a LLC with myself as sole director, which I have done this week.
I've been looking over the HMRC site to get a better understanding of my obligations, and am struggling to believe this is the optimal structure.
Are there any websites that you know of that I can throw some numbers into to show me the tax implications for scenarios. With a known rate per day, I'd like to determine the best way to actually pay myself, thru payroll or dividends, and the costs and deductibility for each scenario. My visa is only for five years, so putting money into a pension plan is not really helpful for me unless I can take it with me when I leave the country.
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

You might be interested in the calculator here. This will tell you how much tax and national insurance contributions you will pay in three different scenarios based on a profit of £50,000:

1 As an employee/director of a limited company taking all the profit as £10,000 salary and the rest as dividend.

2 As an employee/director of a limited company taking all the profit as salary up to the NIC threhold and the balance as dividend.

3 As salary.

4 As a sole trader.

There is more information on dividends and tax here.

I hope this helps but let me know if you have any further questions.

TonyTax and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Thank you. The site you referred me to is exactly what I was looking for, albeit, I would like to see how the calculations are derived, but I'll work thru that on my own.


Many thanks.

Expert:  TonyTax replied 3 years ago.
Thanks for accepting my answer. If you need further help, just ask.