The idiots guide to tax on UK income

[manuel labor]

OK...so the subject line lead you to think I had pearls of wisdom, rather than questions.......sorry!

Am an aussie pondering the mechanics of UK tax on company and personal income.

Can anyone enlighten me given the following assumptions;

* I consult to an organisation in the UK via my own PLC - generating 50K for the year

* My partner does likewise - she is not a director but an employee of the PLC - also generating 50K

Of the 100K generated by the company, can it disburse 40K to each of us - my understanding is that the first 11,500 is tax free, the remaining 28,500 is taxed at 20% - hence 5,750 in total - for each of us to pay in tax?

Do we also pay NHS over and above this, or is this paid by my company on the basis of these wages?

Is there a conventional wisdom as to how one would split / disburse income between a company (directors dividends) and wages for these sorts of low numbers?

 

[Guest The Pom Queen]

You will find @Alan Collett and @Ken are probably the best to advise

[Alan Collett]

11 hours ago, manuel labor said:

OK...so the subject line lead you to think I had pearls of wisdom, rather than questions.......sorry!

Am an aussie pondering the mechanics of UK tax on company and personal income.

Can anyone enlighten me given the following assumptions;

* I consult to an organisation in the UK via my own PLC - generating 50K for the year

* My partner does likewise - she is not a director but an employee of the PLC - also generating 50K

Of the 100K generated by the company, can it disburse 40K to each of us - my understanding is that the first 11,500 is tax free, the remaining 28,500 is taxed at 20% - hence 5,750 in total - for each of us to pay in tax?

Do we also pay NHS over and above this, or is this paid by my company on the basis of these wages?

Is there a conventional wisdom as to how one would split / disburse income between a company (directors dividends) and wages for these sorts of low numbers?

 

Where are you living presently?

Best regards.