Actual salary of locums and tax questions!!

[Raju]

Originally Posted by lamzee

If you are a ltd company, does that mean you have to be VAT registered. If so, do you find it hard to get multiples eg LLoyds, Boots, Rowlands to pay the VAT, with their set rates etc?

From what I understand (I'm no expert):

You only have to be VAT registered if the company's turnover exceeds £64k. From next tax year it will be £67K. Note, this does not apply only to Ltd companies but also to locums who operate as sole traders.

So if you are a locum who is lucky and hardworking enough to be possibly earning in excess of £64k cut back the hours a little and chill out.

[lamzee]

I won't be hitting anywhere near 64k! Thanks for the info though.

[Tony Schofield]

Also, if you were charging VAT, VAT registered companies can claim it back.

[lamzee]

I know that part, I am just not convinced that multiples would pay it in the first place to the locum, since they have rigid payment procedures etc.

[wwjd_andy]

Originally Posted by Raju

Dividends are taxed at 10% for a basic rate taxpayer.

It's corporation tax which is 19%, which are excess profits of your Ltd company, only payable over £10k.

Dividends are taxed at 10% for anything below the higher rate (approx £40 000 ), however whilst in the basic rate, you do not pay dividend tax.

Golden Brown has made this complicated though: the dividends are "grossed up" by 10% (multiply by 10/9) and then 10% is taken off them (x9/10).. so paying a dividend of £10.00 per share on the 100 ordinary shares of £1.00 is as follows:

Shareholding Tax Credit Dividend Payable
100 £111.11 £1000.00

Regards

wwjd_andy

[wwjd_andy]

PS sorry for posting out of sync - that was my first post and I thought it was an important point