'Ideal' Employment Package?

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planteria
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'Ideal' Employment Package?

Post by planteria » Tue Nov 22, 2016 8:09 pm

a friend of mine owns his own company and has only been taking expenses from it in recent times.. allowing significant funds to build up within the company.
we've been talking today about his plans to start to take out more money, and also look to diversify his investments [he owns property] by contributing to a pension plan and an ISA.
in an ideal world, what is the most efficient employment package?
for example, what about if he were to take £80k/yr: £40k Salary/Dividends (i assume taking the threshold as Salary and the rest as a dividend), contributing £15,240 this year (and £20k next year) to an ISA, and taking a £40k pension contribution?
any thoughts :?:
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1960mackem
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Re: 'Ideal' Employment Package?

Post by 1960mackem » Wed Nov 23, 2016 10:30 am

planteria wrote: in an ideal world, what is the most efficient employment package?
To sign on online once a month down the boozer :thumbup:
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Re: 'Ideal' Employment Package?

Post by blythburgh » Wed Nov 23, 2016 11:11 am

1960mackem wrote:
planteria wrote: in an ideal world, what is the most efficient employment package?
To sign on online once a month down the boozer :thumbup:
If you want to live on the breadline but sadly if you are in a rented home then you could work full time and be on the breadline these days.
Keep smiling because the light at the end of someone's tunnel may be you, Ron Cheneler

planteria
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Re: 'Ideal' Employment Package?

Post by planteria » Wed Nov 23, 2016 12:11 pm

well, yes.. but anyone any ideas as to the most tax efficient and investment friendly deal for a director to take from their own company?

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Re: 'Ideal' Employment Package?

Post by hugginhill » Wed Nov 23, 2016 12:24 pm

Your friend needs to take professional advice on his/his company's tax position - there is no one answer; very much depends on personal circumstances. He may also need to take separate advice on investment strategy outside of the company (ISAs/pensions etc) .

Possibly already too late to get to the best arrangement as the funds retained in the company may already have been subject to corporation tax which might have been avoided/mitigated.

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Re: 'Ideal' Employment Package?

Post by planteria » Wed Nov 23, 2016 12:29 pm

no doubt a lot of CT has already been paid hugginhill, but taking dividends will not reduce the CT anyway.. just the salary i understand.
yes, professional advice will be good.. be we can still discuss any ideas :idea:

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Re: 'Ideal' Employment Package?

Post by hugginhill » Wed Nov 23, 2016 2:22 pm

There is no such thing as generic advice - entirely dependent upon individual circumstances.
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Re: 'Ideal' Employment Package?

Post by planteria » Wed Nov 23, 2016 2:45 pm

i didn't suggest that there is.. but we can discuss the concept in a forum if we want to.

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Re: 'Ideal' Employment Package?

Post by pabenny » Thu Nov 24, 2016 7:31 am

planteria wrote:a friend of mine...
I'm normally willing to share my knowledge, but come on planteria, this is advice/thoughts/opinions once removed from the person with the question.
hugginhill wrote:There is no such thing as generic advice - entirely dependent upon individual circumstances.
Exactly.

There are too many variables such as your friend's personal circumstances and future plans (partner, children, home), age, lifestyle preferences (Fiat or Ferrari), current and potential size of business and future investment needs. Identifying these first is essential before trying to optimise a remuneration strategy.

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Re: 'Ideal' Employment Package?

Post by planteria » Thu Nov 24, 2016 9:27 am

i dont agree... it could be discussed. the broad concept of the right balance betweeen Salary/Dividends/Pension if you prefer. and that applies to me too, so fire away if you like. otherwise, maybe head to MSE and contribute to threads by telling the OP that they shouldn't be asking the question they've asked, they need expert advice :problem:

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