Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I'm Keith and happy to help you with your question.
I have tried to download this site and it either does not download or alternatively Property Mentor says the page does not exist.
Please note the following comments [edited] from the web:
So there you are; this site may well be an elaborate scam.
You can minimise your tax position by making contributions to a private pension scheme. You may invest up to 100% of your salary (in your scenario the net profit from your telephone business) up to a maximum of 40K. If you do this through a SIPP you can go back 3 years and the maximum limit for prior years was 50K annually. You claim for the contributions through your annual self assessment tax return although a pension company will usually reduce your premium levels by the basic tax relief and claim that direct from HMRC. If you are only a basic rate tax payer it's the taxation equivalent of the proverbial lemon. Don't forget to advise your tax office of your new self employment status.
I do hope I have helped you with your problem.
Would you say being self employed is the best option?
Or setting up a Ltd company?
As im looking for the most efficient tax way as I want to be able to withdraw 42k to pay off my mortgage.
If self employed what rates would I be taxed on?
As I work full time
So is it fair to say if I budget to make 50% of what I'm earning as net income after tax?
I currently pay 20% tax on my wage.
So would I have to pay more having this income too?
And what about ni?
Ok so if I set up a company.
I have corporation tax at 20%
Then say I didn't take a salary. As I issue I have is each weeks income isn't paid till 45 days later.
So what I would want to do is withdraw the income at year end would that mean I only incur corporation tax?
Or would I incur income tax an ni?
As the realistic aim is to turnover 50-110k
As the Ltd company appeals. I just don't know what I would have to file? As the money I'd recieve has all expenses taken off.