👉🏽👉🏽Watch the 2023/2024 Edition here: czcams.com/video/tOgF3vADCw8/video.html Are you a company director or aspire to be one? What questions do you have for me on the back of watching today's video? 😀
Still listening but the first question that came to my mind is, how can I register a business for my side hustle if I'm still a full-time employee of another company?
Thank you so much for this video. I have had a limited company for almost 20 years and have no idea how any of it works. I have asked my accountant to explain things for me, but they just say no one really understands how things work, leave it to us. This is the first time I understand anything about dividends, salary and NI etc! I shall send this pay suggestion over to them as I only get £31k in total into the company before any expenses whatsoever, so realistically I shouldn't be paying any corp tax or NI. You are wonderful people to give out this easy to understand information for free. I shall be sharing your videos with everyone from now on. Thank you
Hey Jay, we really value your feedback and super pleased that this video has helped you. It's very sad that many accountants aren't as helpful as they could be and even though people are paying them for the service they're not wiser about what they should really be doing. We appreciate you sharing this video too. Thank you 😀
I can't tell you how helpful this video has been for me as a small CZcamsr who has recently registered as a LTD company and had very limited knowledge about the tax efficient ways of paying myself. UK based money/business videos are my saviours and this is the best I've seen so far! Subscribed :) THANK YOU!
So pleased to hear it, Shan :). This topic is very complicated and many people struggle with it. Really pleased to hear it has helped you. What other questions would you like answered?
@@TheHumblePenny I’d love to know what your advice would be on when the right time would be to quit the day job and dive fully into your side hustle?! My side hustle earns far more than my day job but it’s a daunting thought to leave all the security of having a pension/maternity leave/ sick pay behind. Not to mention applying for mortgages ect as a self employed person seems far more complicated!
@@HomeWithShan this is a huge topic. Sorry I've just seen it. If your desire is to run your own business long term, then you'll achieve far more from your business than you would from your job. I say this because I ran a side hustle along side my job for a while and my life is infinitely better now that I left my job to focus on the business full time. In terms of when to quit, here are a few thoughts: 1) If your side hustle makes more money than your job, this is usually a good sign. 2) If you have around 1 year of expenses saved, this is a good sign too that you can take the leap. 3) If you've consistently made good money from your business for at least 2 - 3 years, this is a good sign too. 4) If you have low fixed costs or your have assets that also make you some income, this is a good sign. These are just some points that I can mention in a comment. But there is a much bigger conversation here.
Oh wow, i just love your committment to educating a poor old soul like me who has no business knowledge whatsoever but had to create a ltd company for my counselling businesses. You have helped me to understand what I will probably run through with an account but not really understand. Thank you so much for not only taking the time to explain, but creating the spreadsheet as a visible learning tool and a downloadable one too. I will definitely be downloaded and using it. Thanks again 💖😊 so kind of you to share your knowledge so generously
This is really golden information. I must admit, I always like the video before I actually watch only because I know it's going to be really quality information. Thanks Ken and Mary. My accountant is really good. Being a small business owner he offers excellent advice and that is key.
Great video Ken. I’ve shared with a few friends. Also answered a question I had after seeing Mary’s video on how you budget £49k income - which had a salary of £9k income rather than the optimised £8,840. I’m amazed at how many people I speak to who don’t fully take advantage of the pension component. There are a few other things you could cover, which I tend to explain to my friends and colleagues (1) How to pay yourself if planning on applying for a mortgage (2) Intercompany loans to invest in another business (3) Pension Carry forward for those who make windfall profits in a particular year and haven’t been maximising the £40k contribution in the previous 3 years (4) The pension lifetime allowance of £1mil.. ish and how ltd company owners with siginificant income could strategically plan to get close without breaching (5) the advanced practice of using pensions (via SSAS ) to invest in property that you control Regards Bemi
Hey Bemi Powerful list of areas to explore :). I just don't want to overwhelm anyone just yet. Talking about these one at a time is working so far 😊. Thanks for sharing
This intricate topic was professionally delivered by Ken, I wish the humble Penny YOuTube channels was there in 2012 for me as a free resource. Knowledge gained is never a waste as I’m on the lookout for new opportunities. Bravo 👏 Ken.
Thanks a lot!! :). You're absolutely right that no knowledge is wasted for sure. Key is to actually do something with the knowledge and I'm hoping that anyone who watches this video actually realises how much value is on offer :)
Thank you so so so muchhhhhh this video has really explained it all. For so long I was just so confused, I asked a friend and he directed me to you I had no idea how dividends worked and how to pay myself through my limited company. God bless and thank you again for this content ❤
This is really great information and I’ve sent it to my son who has recently set up a limited company as a contractor. Thank you and Mary for the work that you do. So glad that you are so transparent and willing to share this knowledge. I wish I knew this when I was young. Oh well! I make sure I pass it on to the next generation.
Thank- you so much. You've answered all my questions in this clear and super-informative video. I will present this info to my (useless) accountants today.
I just started my limited company and I am not very sure how much I can pay for myself and be tax efficient. At the moment I have no accountant yet with the bad experience I had on my prior limited company set up. So thankful for sharing this.Its still a lot for me to take in but I will be watching this video more than once definitely to be able to understand how these works-- had 3 previous accountants before and none of them explains these stuff with me.
Hi Ken, You made my day. You really did. Your tutorial is short, clear and simple. I wish I discovered you years ago. I am giving you 100000%. You deserve even more than this. THANK YOU SO MUCH.
Yup! We've had a few requests for this. It's on my list. What exactly would you like to know in that scenario? Are you a basic rate or higher rate tax payer?
@@TheHumblePenny I am basic rate , and just a bit of background: I’m in the process of starting my side hustle in property development/ rentals , I’ve just acquired my first rental property and such a video would be so helpful . Thank you .
This is an amazing video! Could you do a similar one for someone on PAYE with an LTD company and discuss the different scenarios in each tax bracket please? My understanding is this video is for if you done have a PAYE main source of income.
I can't believe there's a £15k difference between the most efficient and least efficient scenarios. Mind boggling. I just intuitively thought that surely it's some hundreds of pounds at that income level
Thank you, man!! Really appreciate that. This one took quite a lot of effort to create and deliver but I'm glad that people are getting a lot of value from it :)
Wow! once again thank you for sharing your expertise. I just registered my small business and I couldn't understand how and what to pay to myself as a director until now. This is a piece of Precious information!!!
OMG ... I have learned so much from just this one video as compared the thousands of hours I have spent here searching for such information.. bless you mate
Thank you soo much 👏🏽 you’re God send. I spend the whole day trying to understand this but you explained it very clearly in layman language in 30 minutes and I understood it. If you were to give a test right now I would get 100 % hahah. Thank you once again
@@TheHumblePenny when you were mentioning that £40k goes in the a pension. Is that a pension that I have to create or and organisations pension that I put the £40k into. Or does it sit in the bank account and classed as pensions of which I can’t spend until I’m 65 (male)?
Little bit misleading in the intro as you state "how to pay yourself as a company director" and then go on to mention dividend payments. As a director, you can't receive dividends. You can only get these as a share holder. A director runs the company, but does not necessarily own the company. A share holder owns the company, but not necessarily run the business. Someone can hold both positions, but I feel talking solely about directors and mentioning dividends at the same time, gives people the impression directors can get dividends, which is not true. Apologies, but as people will be watching this to educate themselves, it's super important we have these things crystal clear.
This video is great and extremely informative, thank you!! I just have a quick questions: 1) what is the implication if there are 3 directors (in a company) and you pay three lotts of salaries between £6240- £8840, will it meet the threshold for the company to then have to pay employee’s NIC and employer’s NIC? I hope this makes sense🙂
You’re doing a great job bro you’re blessing will overflow trust me keep up the good the work, #blackpower #blackwealth #differentfromtherest #differentmindset
Thanks a lot!!! I wanted to make sure that I followed the first one strongly. Glad to hear that you got a lot of value from it :) Please share with others :)
Thanks for the video it is very educative. Please do you have a video on having a PAYE job as an employee and a side hussle as a director and what that means for taxation purposes.
Thanks Ken, this is a great informative video. Waiting patiently for your video in the near future regarding the 'Super Deduction'. An extensive list has not be provided regarding Plant and Machinery and it would be great to dig into that topic some day. Keep up the great work! Thank you :-)
@@TheHumblePenny if ur making over 50 or 100k a year how should u structure ur company while setting it up and a next thing if ur used the pension model u cannot used that money to buy a home or spend u said on if u retire
In an ideal world it would seem easier if you could wait until the end of the year end to calculate how much dividends you are due and pay yourselves in one lump sum of dividends, but if you're paying yourselves approx £700 in wages per month as a small salary how do you "top-up" your wages each month to have money to live off if you're not going to know what your total profit is or total dividends allowance will be until the end of the year? How do you balance taking out enough month to live-off versus not taking too much out so that your Directors' Loan is in a negative balance? It would be great to know how to tax plan and use dividends practically throughout the year.
Awesome video Ken, do you have any plans to make a video on withdrawing profits from a limited company whilst still having a Paye job? For all the people that had been furloughed and started side hustles. I am a higher rate tax payer, and would like to know the best way to withdraw money without paying that hefty 32.5 percent. Keep up the good work!
Great video as usual Ken! One question though, with scenario 2 although it’s the most tax efficient, in reality you’re left with little money, as all of the £40k goes into your pension. This would mean you live off less than £10k for the year, if that is your sole income
Yes, hence why I said it is ideal only for the person who has already built wealth elsewhere and has savings, etc and is happy to prioritise saving most of their money into a pension. It is also not all or nothing. You can put any amount up to £40K into a pension. It still offers you more tax efficiency than just taking salary :)
Thank you for this video. Is there any chance you are able to do a video for those that are full time employees, but have also created their own limited company. What is the best way to be tax effective. Thank you
Excellent video! Everything explained in simple understandable terms! Is the spreadsheet demonstrated available to download at all and could you do an example video for a company with two directors both taking a salary and dividends but with different share holdings?
Hey Mark, much appreciated! 😀. Kindly share with others. Yes, the spreadsheet is available for download. Simply look in the resource section below the video. I also linked to it at the beginning of the video.
First option Dividends and Salary mean you have to live off the Min for a year ie (£8000ish) and get benefits at the end which will pump your salary right up, is that right?? This wouldn't work if have a part time job working for a company though? Love the video's and followed your steps for registering my wedding photography business as limited company. Yours the best!! Rob
Hi Ken, Thank you so much for sharing so many useful tips. All your videos are super valuable. I just want to ask for a private limited company with two directors only or one director and one employee. Any one of them whose salary is above second NI threshold ca claim Employers NI contribution exemption. That could be considered if the company needs to pay salary higher above the second threshold but no need to pay employer NI contribution. The new tax year is coming. Could you please make a video on most efficient way of paying director's salary. Thank you very much. Best wishes
Just stumbled inn your channel and id like to say thank you, your Vlogs are very good and i love the depth knowledge you have. ive subscribed and when im ready to start my own company il be in contact for more advice.
Really great information, thanks for making this video. Could you give an example of Earning above £50k (between £75-K100k) and pension of £5k a year? Thanks
A question came up after thinking about this information, Ken, do I understand correctly that if you also work somewhere else on a payroll as well as have your own Ltd, it’s better to then just take as much as you can in dividends and almost nothing in salary? When they say ‘directors selary’ - does it include dividend from the profited stored in company accounts and divided in 12 parts to take out evenly or how is div exactly taken if it’s not part of monthly pay? Thank you ☺️
Yes to taking as much as possible in dividends as it's more tax efficient if you already get a salary from another job. Dividend is simply a payment you pay yourself either monthly or yearly from your business. So you pay yourself salary first. And then you pay yourself the dividend. Both can be done monthly. But splitting the payment makes it clear for accounting. Make sense?
The reason why most people struggle with their finances is because the data is not presented in a digestible form. The information is on the HRMC site but it's all words. You really need to have someone explain it to you like you have with comparisons. Thanks for sharing this resource.
Just calculated 737 x 12 = 8,844 - This figure is still optimal and tax-efficient, right ? PS: Could You create 2 videos please: 1. Saving & investing strategies to buy first property 2. Buying first property as an individual vs through an ltd co Please please and thank You 🙏
Thanks for making this video! It really puts things into perspective. It would have been good to see the calculation of a realistic pension contribution for scenario 2 though because if someone puts all £40k into a pension which is only accessible at retirement, how then do they live for the time being.
Hey Lize Good point. One can put any amount into a pension :). It would still be more tax efficient that just taking salary. Note that you can download the spreadsheet if you want to run more scenarios. thehumblepenny.com/DVS
Hi Ken, this is a useful video. Thanks. Is there a fourth scenario though? Where you take all your income from dividends because you are already employed somewhere else and using your full personal allowance with that employer.
Great video. Subscribed! The employment allowance also could reduce the NIC bill for the employer upto £5000 right. It's worth considering. I was wondering if you can make a video of how to setup a company pension for director and all info related, that would be really helpful. Thanks
watch the Buget on the 17 nov i think your going to see dividend tax at 20% an 40% an maybe 45% this will end the way your showing if i am right and Directors could see an incrase of 35% higher on total tax bills The Govt will catch up with Directors who have had a dam good run pluse I can see the 2k tax allowance going too
Thanks Ken - great stuff as always. In the scenario 2; does the pension scheme need to be set up in the beginning of a tax year and paid out monthly in a steady figure or can it be calculated & paid at the end of a tax year in a lump sum which may be differ each year, depending on profits ? Thanks in advance 🙏
👉🏽👉🏽Watch the 2023/2024 Edition here: czcams.com/video/tOgF3vADCw8/video.html
Are you a company director or aspire to be one? What questions do you have for me on the back of watching today's video? 😀
I need one such accountant Ken, any suggestions?
Still listening but the first question that came to my mind is, how can I register a business for my side hustle if I'm still a full-time employee of another company?
Simple. Just register one at Companies House. Nothing stops you doing that.
Great video Ken, would love to see this from the perspective of a side hustle and the tax implications at each rate of tax.
@@MoneyGist that’s exactly what l was thinking too! Thanks for the valid question
Thank you so much for this video. I have had a limited company for almost 20 years and have no idea how any of it works. I have asked my accountant to explain things for me, but they just say no one really understands how things work, leave it to us. This is the first time I understand anything about dividends, salary and NI etc! I shall send this pay suggestion over to them as I only get £31k in total into the company before any expenses whatsoever, so realistically I shouldn't be paying any corp tax or NI. You are wonderful people to give out this easy to understand information for free. I shall be sharing your videos with everyone from now on. Thank you
Hey Jay, we really value your feedback and super pleased that this video has helped you. It's very sad that many accountants aren't as helpful as they could be and even though people are paying them for the service they're not wiser about what they should really be doing.
We appreciate you sharing this video too. Thank you 😀
Sack your accountant.
This video is BIG. Thank you for taking the time to create it and the top the quality
Thanks so much, Lakhvinder! :). Please share with others who will find it useful :)
I can't tell you how helpful this video has been for me as a small CZcamsr who has recently registered as a LTD company and had very limited knowledge about the tax efficient ways of paying myself. UK based money/business videos are my saviours and this is the best I've seen so far! Subscribed :) THANK YOU!
So pleased to hear it, Shan :). This topic is very complicated and many people struggle with it. Really pleased to hear it has helped you. What other questions would you like answered?
@@TheHumblePenny I’d love to know what your advice would be on when the right time would be to quit the day job and dive fully into your side hustle?! My side hustle earns far more than my day job but it’s a daunting thought to leave all the security of having a pension/maternity leave/ sick pay behind. Not to mention applying for mortgages ect as a self employed person seems far more complicated!
@@HomeWithShan this is a huge topic. Sorry I've just seen it. If your desire is to run your own business long term, then you'll achieve far more from your business than you would from your job. I say this because I ran a side hustle along side my job for a while and my life is infinitely better now that I left my job to focus on the business full time. In terms of when to quit, here are a few thoughts:
1) If your side hustle makes more money than your job, this is usually a good sign.
2) If you have around 1 year of expenses saved, this is a good sign too that you can take the leap.
3) If you've consistently made good money from your business for at least 2 - 3 years, this is a good sign too.
4) If you have low fixed costs or your have assets that also make you some income, this is a good sign.
These are just some points that I can mention in a comment. But there is a much bigger conversation here.
Oh wow, i just love your committment to educating a poor old soul like me who has no business knowledge whatsoever but had to create a ltd company for my counselling businesses. You have helped me to understand what I will probably run through with an account but not really understand. Thank you so much for not only taking the time to explain, but creating the spreadsheet as a visible learning tool and a downloadable one too. I will definitely be downloaded and using it. Thanks again 💖😊 so kind of you to share your knowledge so generously
😊🙏🏾
This is really golden information. I must admit, I always like the video before I actually watch only because I know it's going to be really quality information. Thanks Ken and Mary. My accountant is really good. Being a small business owner he offers excellent advice and that is key.
Thanks a lot, Kyabangi! Your confidence in the work we do means a lot to us 😊🙏🏽
Great video Ken. I’ve shared with a few friends. Also answered a question I had after seeing Mary’s video on how you budget £49k income - which had a salary of £9k income rather than the optimised £8,840. I’m amazed at how many people I speak to who don’t fully take advantage of the pension component. There are a few other things you could cover, which I tend to explain to my friends and colleagues (1) How to pay yourself if planning on applying for a mortgage (2) Intercompany loans to invest in another business (3) Pension Carry forward for those who make windfall profits in a particular year and haven’t been maximising the £40k contribution in the previous 3 years (4) The pension lifetime allowance of £1mil.. ish and how ltd company owners with siginificant income could strategically plan to get close without breaching (5) the advanced practice of using pensions (via SSAS ) to invest in property that you control
Regards Bemi
Hey Bemi
Powerful list of areas to explore :). I just don't want to overwhelm anyone just yet. Talking about these one at a time is working so far 😊. Thanks for sharing
This intricate topic was professionally delivered by Ken, I wish the humble Penny YOuTube channels was there in 2012 for me as a free resource. Knowledge gained is never a waste as I’m on the lookout for new opportunities. Bravo 👏 Ken.
Thanks a lot!! :). You're absolutely right that no knowledge is wasted for sure. Key is to actually do something with the knowledge and I'm hoping that anyone who watches this video actually realises how much value is on offer :)
Thank you so so so muchhhhhh this video has really explained it all. For so long I was just so confused, I asked a friend and he directed me to you I had no idea how dividends worked and how to pay myself through my limited company. God bless and thank you again for this content ❤
You're so welcome 🙏🏾. Please share with others 😊
This is really great information and I’ve sent it to my son who has recently set up a limited company as a contractor. Thank you and Mary for the work that you do. So glad that you are so transparent and willing to share this knowledge. I wish I knew this when I was young. Oh well! I make sure I pass it on to the next generation.
Thanks so much, Jacqueline 😊
You answered the question I had... And then some. This is brilliant. Thank you so much for this content and the spreadsheet
Amazing 😊. Please share with others 🙏🏾
@@TheHumblePenny Absolutely
Thank- you so much. You've answered all my questions in this clear and super-informative video. I will present this info to my (useless) accountants today.
You're most welcome 😊
I just started my limited company and I am not very sure how much I can pay for myself and be tax efficient. At the moment I have no accountant yet with the bad experience I had on my prior limited company set up. So thankful for sharing this.Its still a lot for me to take in but I will be watching this video more than once definitely to be able to understand how these works-- had 3 previous accountants before and none of them explains these stuff with me.
You're most welcome 😊
Hi Ken, You made my day. You really did. Your tutorial is short, clear and simple. I wish I discovered you years ago. I am giving you 100000%. You deserve even more than this. THANK YOU SO MUCH.
Awww thanks so much 😊. Please share this video with others
So informative Ken! Can I suggest doing a video on how it work if you still have a day job but are looking to set up a side hustle?
Yup! We've had a few requests for this. It's on my list. What exactly would you like to know in that scenario? Are you a basic rate or higher rate tax payer?
@@TheHumblePenny I am basic rate , and just a bit of background: I’m in the process of starting my side hustle in property development/ rentals , I’ve just acquired my first rental property and such a video would be so helpful . Thank you .
@@TheHumblePenny I am a basic rate tax payer
@@TheHumblePenny Can you please look at both scenarios? Lower and higher tax rates? Thanks a million 🙏
@@TheHumblePenny I would also find it really helpful please 🙏
Half way through and this is incredibly valuable. Thank you for the time and effort put in. Appreciate you so much
Vicki, thanks SO much 😊
This is an amazing video! Could you do a similar one for someone on PAYE with an LTD company and discuss the different scenarios in each tax bracket please? My understanding is this video is for if you done have a PAYE main source of income.
this was fantastic!
Thank you 😊. Please share with others
I can't believe there's a £15k difference between the most efficient and least efficient scenarios. Mind boggling. I just intuitively thought that surely it's some hundreds of pounds at that income level
Yeah, how you choose to pay yourself does matter for sure.
This stuff is gold! Thank you!
Thank you, man!! Really appreciate that. This one took quite a lot of effort to create and deliver but I'm glad that people are getting a lot of value from it :)
Your MIND! The POWER!! 🤣🤣🤣🤣 This video is everything bro, appreciate all the insight and advice. Wow!!
😊🙏🏾🙏🏾
Wow! once again thank you for sharing your expertise. I just registered my small business and I couldn't understand how and what to pay to myself as a director until now. This is a piece of Precious information!!!
Hey Aida 👋🏾. Glad you're getting value from this video. Please share with others.
@@TheHumblePenny will do. Thanks again 🙌🏿
Would love to see this video for the 2023/2024 tax year! Thanks for all the info!
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OMG ... I have learned so much from just this one video as compared the thousands of hours I have spent here searching for such information.. bless you mate
😊👊🏾. Please share with others
Love the video... thank you! Sure I'll be back a few times to refresh 😁👍
Really appreciate you preparing this information so succinctly. Thank-you.
You're most welcome! :) It took almost 2 days of work to prepare everything and I hope many people get value from it all.
Absolutely brilliant video. We have been asking our accountant to explain this for years. Thank you!
Awesome 😀. I'd appreciate you sharing this video with other people
@@TheHumblePenny already shared
Thank you 😊
Great content. Looking forward to the 2022-2023 Director salary video
It's coming v.soon 🤗
my favorite financial advisors, great video from The Humble Penny (sharing it as I type)
Thanks so much 😊🙏🏽
Wow !!! What a brilliant video! Thank you so much for breaking it down so well . Now it all makes sense!!
Fab! You're most welcome :)
The value you deliver through this video is incredible. Thank you, Ken!
Thank you soo much 👏🏽 you’re God send. I spend the whole day trying to understand this but you explained it very clearly in layman language in 30 minutes and I understood it. If you were to give a test right now I would get 100 % hahah. Thank you once again
I'm smiling right now 😊
How have I only just found your channel!? Thanks so much for this content! Great food for thought!
You're most welcome 😊
Thank you for this clear information. Much love💯
🙏🏾🙏🏾
Good lad. Thank you for giving everyone this information for free. Legend.
👊🏾
Really appreciate you for doing this! When you explained the spreadsheet is when it all made sense
You're most welcome 😊. It's a complex topic to explain and I'm glad this made sense to you. Please share with others.
@@TheHumblePenny when you were mentioning that £40k goes in the a pension. Is that a pension that I have to create or and organisations pension that I put the £40k into. Or does it sit in the bank account and classed as pensions of which I can’t spend until I’m 65 (male)?
Great video it answers all questions clients ask .Do more videos like this. Excellent
Thank you 😊🙏🏾🙏🏾. I will do.
Little bit misleading in the intro as you state "how to pay yourself as a company director" and then go on to mention dividend payments. As a director, you can't receive dividends. You can only get these as a share holder. A director runs the company, but does not necessarily own the company. A share holder owns the company, but not necessarily run the business. Someone can hold both positions, but I feel talking solely about directors and mentioning dividends at the same time, gives people the impression directors can get dividends, which is not true. Apologies, but as people will be watching this to educate themselves, it's super important we have these things crystal clear.
Thank you for sharing and contributing :)
Great video, didn't know about the pension allowance!
Thank you! :). Most people don't funny enough.
This video is great and extremely informative, thank you!! I just have a quick questions:
1) what is the implication if there are 3 directors (in a company) and you pay three lotts of salaries between £6240- £8840, will it meet the threshold for the company to then have to pay employee’s NIC and employer’s NIC?
I hope this makes sense🙂
Absolutely brilliant 💎
Huge thankful 😊🙏🏾🙏🏾
Thanks for this video, i enjoyed watching every bit of the video how you explained every question that have been asking.
Thanks so much. I'll soon create an update 😊
You’re doing a great job bro you’re blessing will overflow trust me keep up the good the work, #blackpower #blackwealth #differentfromtherest #differentmindset
This video was top quality!
Thanks a lot!!! I wanted to make sure that I followed the first one strongly. Glad to hear that you got a lot of value from it :) Please share with others :)
Incredibly indepth thank you truly
You're welcome. Do share with others 😊
Hey Humble Penny, I absolutely appreciate your effort in puuting this video. I found it helpful. It answered my questions clearly. Thank you!
Amazing 🙌🏾
Hello and thank you for such an informative video. Can you please make a similar video for non-resident investors?
Hey 👋🏾. Please share more. Suggest a title for the video.
Thanks for the video it is very educative. Please do you have a video on having a PAYE job as an employee and a side hussle as a director and what that means for taxation purposes.
We did. Watch it here czcams.com/video/pNxiSzgLHCQ/video.html
Honestly I wish my account took the time to explain these options to me… a very big thank you sir🙏 😊
You're most welcome 😊. Please share with others
Thanks for this, it's been very useful
You're most welcome 😊
Great video 👍
What a great video, thanks very much!
🙏🏾
Anothe excellent video Ken, thanks for sharing this information
You're welcome, Eunice :). Please share with others
Thanks Ken, this is a great informative video. Waiting patiently for your video in the near future regarding the 'Super Deduction'. An extensive list has not be provided regarding Plant and Machinery and it would be great to dig into that topic some day. Keep up the great work! Thank you :-)
Much appreciated! :). Added to my list
Thank you so much, very helpful imformation
You're most welcome 😀
Thank you as always so kind and generous of you keep up the fantastic work and more abundance to youx
😊🙏🏽. Same to you
Thanks for sharing the knowledge! Knowledge is power :)
👊🏾
Really enjoyed this video, the content was very well explained and easy to understand. Thankyou !
Thank you :). Please share with others
Good work bro x
👊🏾
Amazing bro blessings ❤
😊🙏🏾🙏🏾. Share with others
@@TheHumblePenny if ur making over 50 or 100k a year how should u structure ur company while setting it up and a next thing if ur used the pension model u cannot used that money to buy a home or spend u said on if u retire
This was a brilliant video and really helped me out!!! Thank you so much
You're most welcome 😊
Thank you for another great video, it was really clear and informative
Cheers, Carlos! I'd appreciate you sharing with others 😊
Explained perfectly
Thank you 😊
In an ideal world it would seem easier if you could wait until the end of the year end to calculate how much dividends you are due and pay yourselves in one lump sum of dividends, but if you're paying yourselves approx £700 in wages per month as a small salary how do you "top-up" your wages each month to have money to live off if you're not going to know what your total profit is or total dividends allowance will be until the end of the year? How do you balance taking out enough month to live-off versus not taking too much out so that your Directors' Loan is in a negative balance? It would be great to know how to tax plan and use dividends practically throughout the year.
What a video mate! Subscribed and shared
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Awesome video Ken,
do you have any plans to make a video on withdrawing profits from a limited company whilst still having a Paye job?
For all the people that had been furloughed and started side hustles.
I am a higher rate tax payer, and would like to know the best way to withdraw money without paying that hefty 32.5 percent.
Keep up the good work!
Ps you break it down far better than my accountant.
@@benj3787 Much appreciated compliment :) Please share this video with others :)
I will do a video on this scenario, Ben. It is one that many people will want to see I believe :)
@@TheHumblePenny Kindly do Ken. Can't wait enough
Sure 😉
So useful! Thank you!
You're welcome, Alexandra! :). Please share with someone else
Thanks, Ken. This is rich and will come in very handy.
Brilliant, so helpful. Thank you.
Thank you, Jill :)
Great video as usual Ken! One question though, with scenario 2 although it’s the most tax efficient, in reality you’re left with little money, as all of the £40k goes into your pension. This would mean you live off less than £10k for the year, if that is your sole income
Yes, hence why I said it is ideal only for the person who has already built wealth elsewhere and has savings, etc and is happy to prioritise saving most of their money into a pension. It is also not all or nothing. You can put any amount up to £40K into a pension. It still offers you more tax efficiency than just taking salary :)
Wonderful, thank you Ken.
You're welcome, Richard! 😊
Such a great video! Thank you!
You're welcome, Abena!! Please share with others :)
Fantastic content!
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Thanks for sharing this amazing information.
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Great video!
Terrific- thank you!
You're most welcome 😊. Please share with others, Asim.
Great video
Please share with others
Thank you for this video. Is there any chance you are able to do a video for those that are full time employees, but have also created their own limited company. What is the best way to be tax effective. Thank you
Hey Leon, this one is on our list for sure. It's coming :)
@@TheHumblePenny thank you so much, this would truly be a godsend I have been trying to find this information everywhere 💛
It's rare info. We'll deliver! 👊🏾
Absolutely loved this and as a new business owner, you just made all of this really simple! Thank you 😊
Awesome, thanks so much, Vincent! 😀. Do share with other business owners
Thank you, I learnt so much. Cheers!
Excellent video! Everything explained in simple understandable terms! Is the spreadsheet demonstrated available to download at all and could you do an example video for a company with two directors both taking a salary and dividends but with different share holdings?
Hey Mark, much appreciated! 😀. Kindly share with others. Yes, the spreadsheet is available for download. Simply look in the resource section below the video. I also linked to it at the beginning of the video.
First option Dividends and Salary mean you have to live off the Min for a year ie (£8000ish) and get benefits at the end which will pump your salary right up, is that right?? This wouldn't work if have a part time job working for a company though? Love the video's and followed your steps for registering my wedding photography business as limited company. Yours the best!! Rob
Thank you that was very useful 👍
Thank you 😊
Hi Ken, Thank you so much for sharing so many useful tips. All your videos are super valuable. I just want to ask for a private limited company with two directors only or one director and one employee. Any one of them whose salary is above second NI threshold ca claim Employers NI contribution exemption. That could be considered if the company needs to pay salary higher above the second threshold but no need to pay employer NI contribution.
The new tax year is coming. Could you please make a video on most efficient way of paying director's salary. Thank you very much.
Best wishes
New one loading for next week 😀
Just stumbled inn your channel and id like to say thank you, your Vlogs are very good and i love the depth knowledge you have. ive subscribed and when im ready to start my own company il be in contact for more advice.
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Really great information, thanks for making this video. Could you give an example of Earning above £50k (between £75-K100k) and pension of £5k a year? Thanks
You are the best in uk…
Very kind! 😊
A question came up after thinking about this information, Ken, do I understand correctly that if you also work somewhere else on a payroll as well as have your own Ltd, it’s better to then just take as much as you can in dividends and almost nothing in salary? When they say ‘directors selary’ - does it include dividend from the profited stored in company accounts and divided in 12 parts to take out evenly or how is div exactly taken if it’s not part of monthly pay? Thank you ☺️
Yes to taking as much as possible in dividends as it's more tax efficient if you already get a salary from another job.
Dividend is simply a payment you pay yourself either monthly or yearly from your business.
So you pay yourself salary first. And then you pay yourself the dividend. Both can be done monthly. But splitting the payment makes it clear for accounting. Make sense?
The reason why most people struggle with their finances is because the data is not presented in a digestible form.
The information is on the HRMC site but it's all words. You really need to have someone explain it to you like you have with comparisons.
Thanks for sharing this resource.
You're most welcome, Kwame! 😀. You make an excellent point. Please share this video with others. Thank you
Just calculated 737 x 12 = 8,844 - This figure is still optimal and tax-efficient, right ?
PS: Could You create 2 videos please:
1. Saving & investing strategies to buy first property
2. Buying first property as an individual vs through an ltd co
Please please and thank You 🙏
Yes, and great suggestions :)
Thanks for making this video! It really puts things into perspective. It would have been good to see the calculation of a realistic pension contribution for scenario 2 though because if someone puts all £40k into a pension which is only accessible at retirement, how then do they live for the time being.
Hey Lize
Good point. One can put any amount into a pension :). It would still be more tax efficient that just taking salary. Note that you can download the spreadsheet if you want to run more scenarios. thehumblepenny.com/DVS
Amazing. Thanks for sharing the spreadsheet
@@TheHumblePenny wouldn't you pay income tax on pension when it comes time to drawn down?
Yes on 75% as an individual. Not as a business.
Thank you so much. Truly
Aww, you're most welcome :) Please share with others
Looks like watching this will make me £££££s! Thank you.
Very educative
Great stuff :-)
Thank you, Stephen!! Please share with others :)
Hi Ken, this is a useful video. Thanks. Is there a fourth scenario though? Where you take all your income from dividends because you are already employed somewhere else and using your full personal allowance with that employer.
Yes, that scenario exists. I'll make a video about it in time.
Great video. Subscribed! The employment allowance also could reduce the NIC bill for the employer upto £5000 right. It's worth considering. I was wondering if you can make a video of how to setup a company pension for director and all info related, that would be really helpful. Thanks
watch the Buget on the 17 nov i think your going to see dividend tax at 20% an 40% an maybe 45% this will end the way your showing if i am right and Directors could see an incrase of 35% higher on total tax bills The Govt will catch up with Directors who have had a dam good run pluse I can see the 2k tax allowance going too
Amazing I could kiss you 😅😆 instead 🤝👊🏾. Really dope video you've given me the confidence needed to progress with my business
Haha 😄 . You're most welcome 🙏🏾. Please share this video with others
Most definitely!
Thanks Ken - great stuff as always. In the scenario 2; does the pension scheme need to be set up in the beginning of a tax year and paid out monthly in a steady figure or can it be calculated & paid at the end of a tax year in a lump sum which may be differ each year, depending on profits ?
Thanks in advance 🙏