Accountancy fees for an LLC in the UK
Mar 9th 2023, 3:26 pm
#16
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: Accountancy fees for an LLC in the UK
There are factors personal to each case that don't belong on a public forum, but generally HMRC does not allow the use of a personal service company (one owner/employee) formed solely to circumvent the laws and taxes related to being a direct employee. So I suspect that there is more to LiW's situation than she should share on a public forum.
Mar 9th 2023, 3:27 pm
#17
Account Closed
Joined: Mar 2017
Posts: 0
Re: Accountancy fees for an LLC in the UK
There are factors personal to each case that don't belong on a public forum, but generally HMRC does not allow the use of a personal service company (one owner/employee) formed solely to circumvent the laws and taxes related to being a direct employee. So I suspect that there is more to LiW's situation than she should share on a public forum.
Mar 9th 2023, 6:05 pm
#18
Thread Starter
Joined: Aug 2003
Location: East Seaxe
Posts: 72,502
Re: Accountancy fees for an LLC in the UK
There are factors personal to each case that don't belong on a public forum, but generally HMRC does not allow the use of a personal service company (one owner/employee) formed solely to circumvent the laws and taxes related to being a direct employee. So I suspect that there is more to LiW's situation than she should share on a public forum.
This. Be reassured that I'm not circumventing anything though.
But what you've all said is helpful anyway.
Mar 14th 2023, 10:30 pm
#19
Forum Regular
Joined: Aug 2007
Posts: 57
Re: Accountancy fees for an LLC in the UK
Thanks, both. This all makes sense. I think iti's fair to say that my aptitude for number is 0 so it always takes me a lot longer than it does anyone else. My taxes in the US were simple and I did them no problem. But I'm still a bit at sea here.
Christmasoompa, may I ask how often you vote yourself dividends? Quarterly? Monthly? Don't answer if it's too much personal info of course.
Christmasoompa, may I ask how often you vote yourself dividends? Quarterly? Monthly? Don't answer if it's too much personal info of course.
I agree take out in salary at least up to the personal allowance. As an entity that's just starting out, monitoring this and be prepared to make changes at short notice, or no notice is vital. You may find it necessary to consult with your accountant on a regular or semi regular basis until the foundations are more secure. What about pension contributions?
Mar 15th 2023, 12:29 am
#20
BE Enthusiast
Joined: Dec 2008
Posts: 525
Re: Accountancy fees for an LLC in the UK
You may want the salary to be the National Insurance limit, advice I see is:
"Taking all the above taxes together, in the 2022/23 and 2023/24 tax year, it's usually tax-efficient for most limited company directors to take a monthly salary up to the NI Secondary threshold of £758.33 per month, or £9,100 per year."
You should check with your accountant per advice from Errol.
"Taking all the above taxes together, in the 2022/23 and 2023/24 tax year, it's usually tax-efficient for most limited company directors to take a monthly salary up to the NI Secondary threshold of £758.33 per month, or £9,100 per year."
You should check with your accountant per advice from Errol.
Mar 15th 2023, 7:36 am
#21
Thread Starter
Joined: Aug 2003
Location: East Seaxe
Posts: 72,502
Re: Accountancy fees for an LLC in the UK
I think this is an issue between you and the accountant. There is an annual dividend exclusion and as far as I know, it covers all dividend payments over the year from all sources. I know for a limited company, technically, dividends can only be paid from earnings and profits.
I agree take out in salary at least up to the personal allowance. As an entity that's just starting out, monitoring this and be prepared to make changes at short notice, or no notice is vital. You may find it necessary to consult with your accountant on a regular or semi regular basis until the foundations are more secure. What about pension contributions?
I agree take out in salary at least up to the personal allowance. As an entity that's just starting out, monitoring this and be prepared to make changes at short notice, or no notice is vital. You may find it necessary to consult with your accountant on a regular or semi regular basis until the foundations are more secure. What about pension contributions?
You may want the salary to be the National Insurance limit, advice I see is:
"Taking all the above taxes together, in the 2022/23 and 2023/24 tax year, it's usually tax-efficient for most limited company directors to take a monthly salary up to the NI Secondary threshold of £758.33 per month, or £9,100 per year."
You should check with your accountant per advice from Errol.
"Taking all the above taxes together, in the 2022/23 and 2023/24 tax year, it's usually tax-efficient for most limited company directors to take a monthly salary up to the NI Secondary threshold of £758.33 per month, or £9,100 per year."
You should check with your accountant per advice from Errol.
Mar 17th 2023, 10:34 am
#22
SUPER MODERATOR
Joined: Oct 2007
Location: In a darkened room somewhere.............
Posts: 34,029
Re: Accountancy fees for an LLC in the UK
You may want the salary to be the National Insurance limit, advice I see is:
"Taking all the above taxes together, in the 2022/23 and 2023/24 tax year, it's usually tax-efficient for most limited company directors to take a monthly salary up to the NI Secondary threshold of £758.33 per month, or £9,100 per year."
"Taking all the above taxes together, in the 2022/23 and 2023/24 tax year, it's usually tax-efficient for most limited company directors to take a monthly salary up to the NI Secondary threshold of £758.33 per month, or £9,100 per year."
