[Archer]

am i right in saying if you earn £38k and above you pay 40% tax


what can you do to reduce what you pay in tax


any advice would be super.

[williamx]

Don't earn more than 38k


or go LTD

[daz1977]

you should only pay that if u r drawing that as a wage,  the only way u cant pay that amount in tax is not to draw 38 grand, (its 40 on anything over 38 grand  22 up to 38 grand)

it all depends on how u r running ur business, and i take it from the size of urs ur are not a sole trade but a ltd proper business and drawing a wage,   u coudl split ur wage between u and ur wife if she int working,  to help cut down on the tax

[Archer]

Yes i am ltd, but my missus works

[daz1977]

if ur drawing it as a wage then   the only thing i think u can do is go self employed and sub contract on a cis card, but i dont know who that would work with u being a director

so start paying ur self in cash

[chopsie]

if you are earning that much you must have an accountant? if they are any good they will surely be able to help you cook your books err i mean suggest ways of reducing your tax bill

[williamx]

are you just taking a wage out of the company or are you paying yourself a wage and dividend.

[Archer]

wage and dividend

[williamx]

you could sell your house to your company

[daz1977]

go see ur accountant,   pay ur self 38 wages and the rest in dividands as the company will pay 20 % on these

[Ian101]

cant wait till I have to pay 40% tax 

[martinsadie]

i wouldnt mind paying all that tax