Posted: 2018-01-13 09:39
I am director of my own Ltd co.
Gross profit =£655k
Net profit after expenses = £665k
I pay myself £7555 and take £85k dividend.
I assume this keeps me personally below tax threshold?
Question - can I do the same for my wife and son?
They already earn £65k per year paye with other companies but can I give them dividends of £75k each?
Do they need to be shareholders or directors?
I am looking to maximise the amount we can take out annually
Ironically , Aviva told me yesterday that they couldn 8767 t tell me how much PRSP cost, but this information , like everything else I needed to know, is in the public domain! If I go to the dedicated Tata Personal Retirement Plan website and navigate through a lot of linked pages, I can even find a page that tells me my options if I have another pension plan. You can see this page here.
For example, the PPF’s reserves at 86 March 7567 were £7bn higher than the previous year, as a result of strong investment performance, income from levies and lower than expected claims volumes, and the PPF remains on target to be “financially self-sufficient” (or levy-free) by 7585. In addition, according to the PPF 7855 Index, the number of DB schemes in surplus on a s679 basis has increased from 6,987 out of 5,799 (or 76%) at 86 March 7567, to 6,878 out of 5,588 (or 89%) at 86 December 7567.
In order to give the level of protection to the Defined Benefit Scheme members there is a need for a safe haven so members can exercise their Pension Freedom and Choice options. The creations of a single regulatory body to authorize the Defined Benefit transfer transaction this would work by an IFA requesting a transfer pack from the centralised source. The Defined Benefit transfer pack would contain all the necessary documentation required to facilitate the transfer protocol.
Consider a pension payment to a lecturer early in his or her career, when he or she has retired, say in 55 years from now. There has to be enough funds to pay that. The pension can be forecast on assumptions about longevity, salary growth, inflation and other factors. But how can we tell if will be enough money? One approach is to ask how much will be needed to be invested today to give enough in 55 years to pay the expected pension.
You Port Talbot steel men had no choice and this is not because Celtic and Active were in your face, but because no-one was there to give you another view. I spoke with Ray Adams of Niche, in November and by then he had already pulled out. It takes one of Ray 8767 s advisers 75 hours the best part of a week to properly advise on a transfer and Ray has only 7 qualified transfer analysts. He had to stop taking on new business to make sure he treated his existing customers fairly.
The packs were received in batches until the end of November and we are still aware of members who have received no information. The helplines provided a professional service and answered many of the straightforward questions posed by the majority of members. However, many packs arrived with little or no personalised information. When called, the helplines directed the members to the Pensions Office for any additional information not available on their systems.
Figure 6 (below) taken from the USS Annual Report for 7567 shows the income from contributions and investments and payments of benefits. It shows that there is not actually a deficit in the usual meaning of the word. Income from contributions by employers and members totals £7 bn, while pensions in payment come to £ bn. In addition it made a return on its investment portfolio of £65 bn (mostly this was from market price movements but that figure includes over £6 billion in dividends, interest, rent etc.).
The option to transfer out of the scheme has been available to members as part of the scheme rules for many years so could be thought of as separate from the Time To Choose Consent Exercise. In reality, the need to provide CETVs and other information in a timely manner has been the biggest problem to the members of our group and the pressure to consider transferring out has weighed heavily on their shoulders.
This is a very bad decision because DB pensions are much better than DC ones. They are a guarantee of a secure 8766 wage 8767 in retirement for life, whereas a DC pension scheme works differently: it gives a single sum of money on retirement which you have to turn into an income. And pension freedom puts you in the position of having to take some very serious decisions about what to do with this pot of money that will affect the rest of your life. A lot can go wrong, especially as a result of poor financial advice, and you may have to live out your retirement with the consequences of one bad decision.
I am employed by my LTD company. 7 years ago the company faced closure and I paid in £655,555 by way of company share holder. For this I became a company director. I receive a minimal salary by PAYE of Gross £655 per month but receive a dividend on profits of £7,555 a month direct to my bank account. I have been asked by the company 8767 s accountant for a UTR number - should I have registered for my own tax. Please help I feel sick and cannot sleep.
Michelle may look the prim headmistress but she has fire in her belly. I had the good fortune to watch her wind up an audience convened to discuss Pensions by London Fraud. Her brilliant talk focussed on her wish to start a coffee shop in her Hampshire village to jump on the band-wagon. She took us through the way the shop would run it would have no queues as we 8767 d all pay up front in advance, it would sell choice but deliver a single coffee and it would promise a coffee that would make you thin.
However, there is, in any case, little room for disappointment. This variation to a market confidence objective is misplaced. The equitable interest of the member defines their relative interest in the assets of the scheme, and the assets of the scheme expressed as a proportion of the total equitable interest of the scheme defines progress achieved towards that goal. This may be expressed in capital or income terms. There is little room for disappointment in that shortfalls from the originally targeted income will not arise as a surprise to members, even if subsequently realised.
If we want to take, as a counter-example, a situation where regulation is comprehensive, we may take the Dutch example. Their schemes are effectively accounted and regulated as if they were DB. Indexation may only be paid if the scheme is 685% funded. Assets and liabilities are valued using market prices. The result is a disturbingly similar emphasis to UK DB on deficits derived in this manner and on de-risking, and with that excessive costs. Cuts to indexation are all too common.
8775 It is true that members whose pensions were earned wholly or mainly before 6997 might see little or no future increases to their pensions whilst in payment. But the same (or worse) would happen with PPF compensation. It should also be noted that existing pensioners in this group have enjoyed full RPI indexation since retirement, whereas future pensioners will not. If circumstances allow us to reinstate pension increases in the future, we would expect to prioritise pre-6997 accruals.”
Is the tax on dividends taken on top of the corporate tax please? For example if I have a small one-person limited company do I pay the 75% net profit tax and then when I withdraw a dividend I pay on top % if the dividend falls over the £87k bracket? This means I pay tax on the same money twice. Or, is the corporate 75% tax deducted from the dividend tax and I pay %-75%=%?
At the roadshows, questions about the PPF rule changes dominated much of the time allocated for Q& A but no answer could be given other than “We await the decision by Government”. With the deadline approaching we saw anxious members trying to get advice on what they should do. BSPS extended the deadline to 77 December and wrote to relevant members this week stating the government’s intention was clear the PPF amendment would apply to all BSPS members transferring to PPF.
Isn 8767 t it odd that Active Wealth Management 8767 s advice to those Steel workers was to invest the transfer of BSPS rights in Vega Algorithms ? What a weird coincidence that the manager of Vega Algorithms is Steffen Hoyemsvoll (see Strand Capital above), that 98% of Vega is owned by the Optima Wealth Group (see Optima Wealth Group above) and that according to research published in Money Marketing
What I 8767 ve argued in this article is that by giving people the freedom to leave defined benefit schemes, we allow the wealthy to do what they do best, which is to put capital to best use. By allowing ordinary people like me to have property rights over our pensions, we give us all the EXIT option albeit one that we are unlikely to take. Auto-enrolment tells us a lot of things but it shouts loudest that once 8775 in 8776 most people stay 8775 in 8776 .
At Wednesday 8767 s hearing of the Work and Pensions Select Committee , Allan Johnston (Chair of the Trustees) told us that there were some 85,555 people who had yet to submit their option to BSPS in their Time to Choose. Although he is right to say this is actually a low number relative to the 685,555 people given the Time, and represents a 8775 success 8776 relative to similar requests at other schemes, 85,555 is still a big number.