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The Holistic Hustle
United Kingdom
Приєднався 9 лют 2020
Through this channel I will share my knowledge on business, e-commerce and marketing, as well as habits you need to 'level-up' in life, how to initiate those habits and how to sustain them. For those who haven't been silver spoon fed and need to fend for themselves this will be a great place to start or continue your journey.
Holistic - "Encompassing the whole of a thing, and not just one part".
Hustle - "To proceed or work rapidly or energetically".
This page isn't just about how to succeed through business but also through life. The key is to hustle and enjoy the journey!
Holistic - "Encompassing the whole of a thing, and not just one part".
Hustle - "To proceed or work rapidly or energetically".
This page isn't just about how to succeed through business but also through life. The key is to hustle and enjoy the journey!
How to Pay Yourself from a Limited Company UK | Best Way to Pay Yourself as a Director in 2024/2025
Discover the Best Way to Pay Yourself as a Director of a Limited Company for the Tax Year 2024/2025.
As a director of a limited company, determining the most tax-efficient salary for yourself is crucial. Let's delve into the recommended salary approved by accountants for this fiscal year.
Salaries exceeding this threshold face double taxation, subject to both employer's NI at 13.8% and employee's NI at 8%. Hence, diverting dividends above the primary threshold proves a wiser approach, as NI doesn't apply to dividends.
Income tax and NI thresholds remain unchanged this year. Frozen thresholds, combined with rising salaries, translate to increased tax revenues for the government.
Combining a basic salary with dividends typically emerges as the most tax-efficient remuneration method from a limited business. Basic salary usage maximises the tax-free personal allowance, while dividends offer a favourable tax regime compared to the conventional income tax and NI combo.
Nevertheless, individual circumstances may warrant a full PAYE salary. It's advisable to consult an accountant to ascertain the ideal director's salary for your limited business.
For the 2024/2025 fiscal year, income tax rates and thresholds are as follows:
- Personal allowance: £12,570 (0%)
- Basic rate: £12,571 to £50,270 (20%)
- Higher rate: £50,271 to £125,140 (40%)
- Additional rate: £125,140+ (45%)
On the other hand, dividend tax rates and thresholds for the same period are:
- Basic rate: £13,071 to £50,270 (8.75%)
- Higher rate: £50,271 to £125,140 (33.75%)
- Additional rate: £125,140+ (39.35%)
Key Facts About Dividends:
- Payable to shareholders from current or retained profits
- Can be disbursed monthly, quarterly, or annually
- Taxed via self-assessment
- Tax-free dividend allowance for 2024/2025: £500
National Insurance rates and thresholds for 2024/2025 include:
- Lower Earnings Limit (Pension Threshold): £6,396 per year
- Primary Threshold (Employees): £12,570 per year
- Employees Rate: 8% up to £50,270, 2% thereafter
- Secondary Threshold (Employers): £9,100 per year
- Employers NI: 13.8% above the secondary threshold
Corporation tax rates and thresholds for 2024/2025:
- Less than £50,000 (Small Profits Rate): 19%
- £50,001 to £250,000: Marginal Relief
- £250,000+: 25%
Most Tax-Efficient Director’s Salary for 2024/2025:
- Recommended Salary: £12,570 per year / £1047.50 per month (Dividends for amounts above)
- Utilizes personal allowance fully
- Above LEL threshold for state pension eligibility
- Below primary threshold (no employee NI)
Corporation tax savings on allowable business expenses:
- Salary
- National Insurance
- Pensions
The costs below can be expensed if solely used for your business:
- Startup costs (can be claimed up to 7 years before the company starts trading)
- Health check and eye test expenses (if you use computer screens as a big part of your job)
- Business insurance expenses
- Advertising, marketing and PR expenses
- Accommodation expenses for business trips
- Bank charges
- Phone bills
- Equipment expenses including phones, computers and more.
Timecodes:
0:00 - Intro
1:25 - Income Tax
3:16 - National Insurance
8:40 - Corporation Tax
10:29 - Dividends
13:53 - My Recommended Salary
14:15 - Reasons for Recommended Salary
------------------------------------------
SCHEDULE A 1-2-1 COACHING CALL WITH ME
🤝 bit.ly/3UbUSeN
------------------------------------------
REGISTER A VIRTUAL OFFICE IN THE UK
🏢 bit.ly/3S85qch
------------------------------------------
MARGINAL RELIEF CALCULATOR
💰 bit.ly/4cwgjhn
------------------------------------------
UA-cam VIDEO ON HOW TO REGISTER A COMPANY
📹 ua-cam.com/video/1KjVQ62P21E/v-deo.html
------------------------------------------
SUBSCRIBE TO MY CHANNEL
🔴 ua-cam.com/channels/kI2fQz3wJSLLlVCI_7u7QQ.html
------------------------------------------
I'll be releasing more Business, E-Commerce and Marketing related content. So if you found this video helpful and want to stay tuned with more videos then please subscribe to my channel so I can keep these videos coming!
Let me know if this has helped in the comments below!
As a director of a limited company, determining the most tax-efficient salary for yourself is crucial. Let's delve into the recommended salary approved by accountants for this fiscal year.
Salaries exceeding this threshold face double taxation, subject to both employer's NI at 13.8% and employee's NI at 8%. Hence, diverting dividends above the primary threshold proves a wiser approach, as NI doesn't apply to dividends.
Income tax and NI thresholds remain unchanged this year. Frozen thresholds, combined with rising salaries, translate to increased tax revenues for the government.
Combining a basic salary with dividends typically emerges as the most tax-efficient remuneration method from a limited business. Basic salary usage maximises the tax-free personal allowance, while dividends offer a favourable tax regime compared to the conventional income tax and NI combo.
Nevertheless, individual circumstances may warrant a full PAYE salary. It's advisable to consult an accountant to ascertain the ideal director's salary for your limited business.
For the 2024/2025 fiscal year, income tax rates and thresholds are as follows:
- Personal allowance: £12,570 (0%)
- Basic rate: £12,571 to £50,270 (20%)
- Higher rate: £50,271 to £125,140 (40%)
- Additional rate: £125,140+ (45%)
On the other hand, dividend tax rates and thresholds for the same period are:
- Basic rate: £13,071 to £50,270 (8.75%)
- Higher rate: £50,271 to £125,140 (33.75%)
- Additional rate: £125,140+ (39.35%)
Key Facts About Dividends:
- Payable to shareholders from current or retained profits
- Can be disbursed monthly, quarterly, or annually
- Taxed via self-assessment
- Tax-free dividend allowance for 2024/2025: £500
National Insurance rates and thresholds for 2024/2025 include:
- Lower Earnings Limit (Pension Threshold): £6,396 per year
- Primary Threshold (Employees): £12,570 per year
- Employees Rate: 8% up to £50,270, 2% thereafter
- Secondary Threshold (Employers): £9,100 per year
- Employers NI: 13.8% above the secondary threshold
Corporation tax rates and thresholds for 2024/2025:
- Less than £50,000 (Small Profits Rate): 19%
- £50,001 to £250,000: Marginal Relief
- £250,000+: 25%
Most Tax-Efficient Director’s Salary for 2024/2025:
- Recommended Salary: £12,570 per year / £1047.50 per month (Dividends for amounts above)
- Utilizes personal allowance fully
- Above LEL threshold for state pension eligibility
- Below primary threshold (no employee NI)
Corporation tax savings on allowable business expenses:
- Salary
- National Insurance
- Pensions
The costs below can be expensed if solely used for your business:
- Startup costs (can be claimed up to 7 years before the company starts trading)
- Health check and eye test expenses (if you use computer screens as a big part of your job)
- Business insurance expenses
- Advertising, marketing and PR expenses
- Accommodation expenses for business trips
- Bank charges
- Phone bills
- Equipment expenses including phones, computers and more.
Timecodes:
0:00 - Intro
1:25 - Income Tax
3:16 - National Insurance
8:40 - Corporation Tax
10:29 - Dividends
13:53 - My Recommended Salary
14:15 - Reasons for Recommended Salary
------------------------------------------
SCHEDULE A 1-2-1 COACHING CALL WITH ME
🤝 bit.ly/3UbUSeN
------------------------------------------
REGISTER A VIRTUAL OFFICE IN THE UK
🏢 bit.ly/3S85qch
------------------------------------------
MARGINAL RELIEF CALCULATOR
💰 bit.ly/4cwgjhn
------------------------------------------
UA-cam VIDEO ON HOW TO REGISTER A COMPANY
📹 ua-cam.com/video/1KjVQ62P21E/v-deo.html
------------------------------------------
SUBSCRIBE TO MY CHANNEL
🔴 ua-cam.com/channels/kI2fQz3wJSLLlVCI_7u7QQ.html
------------------------------------------
I'll be releasing more Business, E-Commerce and Marketing related content. So if you found this video helpful and want to stay tuned with more videos then please subscribe to my channel so I can keep these videos coming!
Let me know if this has helped in the comments below!
Переглядів: 11 839
Відео
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Sole Trader vs Limited Company - Watch to Help you Decide!
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When starting a business, should you begin as a limited company or operate as a sole trader? By the end of this video which presents a like-for-like comparison between registering as a sole trader vs limited company you should be able to decide on whether to register as a sole trade or a limited company. Within the video I compare and cover the following topics (feel free to skip to the one you...
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Register a Virtual Address: bit.ly/3S85qch This is a step by step tutorial on how to register a limited company in the UK. Most importantly we discuss the top 10 things you need to know before registering a limited company in the UK. Before walking through the how to form a limited company application process from start to finish, we'll be discussing the top 10 things you need to know before re...
How to Register a Trademark in 30 minutes: A Step by Step Tutorial
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Awesome video.. very informative for a novice person like me. Thank you so much!! :)
Thank you very much for help... I paid 50 i think the start taking my money before I start earning
Awesome video. Very instructive and straight to the point. The best amongst all videos I came across. You can't go wrong with this video.
Hello how can i re-reactivate my Utr number please and thank you
double voice from 4:20 to 4:28 approx.
hes fit
Thank you! I am registering my business tomorrow and feel more confident from watching your video!
thank you that was great! ✨
Thanks for the video. Whats the best way to pay 100K from a limited company.
Can i buy an already set up company? if yes do i need a UK resident permit to establish ?
Is this process same for a foreigner ?
thank you so much, honestly it would of taken me forever to have sussed this out, after watching it was super easy.
I hope to make a new video about how we can open a company website on uk
Very helper
Please how I can open website for my company
Can we do it as a non uk resident
The trademark I want has been registered with the same class, but has expired 6 months ago. Do I go down the image route or risk being opposed with text only?
I'm a chartered accountant going freelance for the first time, this video is brilliant thank you so much! Also shout out to the .gov website for actually being decent - one thing the UK has done well
If your company makes a lot of profit, would it be better to have a directors salary of 85k as you can reduce your corp tax bill, which would be taxed at 25%.
I am from another country, will it give me automatic virtual address in LTD opening process? Or should I open Virtual Address at the beginning?
Really well explained. Subscribed.
is there any reason for my payment to be 50 and your is 12 ? but amazing vid really good stuff
Can you tell me about the situation where the Director isn't UK resident, what's the process like for them.
But where is the video ?
Amazing, thank you! Just set up to do property flips! Shame fee is £50 not £12 now :D
Hi. I earn 55k before taxes and my wife earns approx 30k (she is less rhan full time 70%. Would it make sense to start a ltd company or own property btl in my wifes name?
Thank you for the Video! However, seems like the way trademarks are registered has changed, you cannot just select the lists as before, you need to enter terms by yourself, one by one?
In depth tutorial. BRAVO 👏🏽
Hi mate, Quick question which I may off already answered I am going to be stepping into a part-time role alongside a new business. I have already earned over the personal allowance threshold, in which case as a director of the new business I am assuming the best tax efficient way would be to pay myself dividends? Thank you Ben
Thank you for the info , it still works in 2024 . well done
Can I use the register agent address in as my personal address as will since I do not live in UK, or should I use my home address from Afghanistan?
Brilliant video and step by step explanation without no Bull! 10/10
Thank u so much for this. Really helpful. Pls i would like to ask regarding the address, if u stay in a rented house where it clearly states by rhe landlord that the house shouldnt be used for business, can it be used as a trading address still? Or u use the virtual address for both slots. Thank u
I am a sole proprietor trader from India seek's your guidance, Can an Individual do everything legal formalities to incorporate a company in UK ?
Well done 👏 This is a helpful video
Which other countries we can make like this with cheaper
I want to open a branch in uk. And i don’t have address in uk. I have a trusted friend in uk. Should he be director in company or me?
Does this work for non residents too
Hi would you recommend registering for VAT if you make less than £90,000, I've tried researching it but I've just become really confused as to why you'd tax yourself more and force yourself to hike prices if you don't need to
Thanks for the clear tips on how to leverage Semrush better!
So, I'm registering as a sole trader/self-employed, and when it asks, 'Are you self-employed? ' I click YES?
Hello May I ask you please, if I inject like £50K into my business initially, is there any way to withdraw this money later from the company's business account, or this money must remain under the company's name? Thanks
Thankyou so much. You were exremely helpful, I will also make sure to watch your other videos in helping get my business setup. Get in!
GOOD INFORMATION. THANK YOU. I subscribed and hit the Like button. Laura in uk
sadly it costs £50 now
Can shareholders be overseas? Like American or Dutch?
If i create a company in Uk, but I live in Costa Rica, no employees, only me, do I still have to pay insurance? I dont care about that or pension because I don't live there... Also, I plan to create a company to be able to run kickstarters, which means I wont have a monthly income for the company. How do payments work that way? Can a company not pay the montly salary?
for government gateway should you use a personal email or one you have created for the business?
bro whats the sic code that allow banks tend lend rather than waiting 2 years
Very useful. However, does auto enrollment for pensions apply to directors like other employees?I am not impressed with the expensive auto enrollment options available, hence have limited salary to £750pm to avoid employers NI and to avoid auto enrollment (company pays into a SIPP instead).