As the only employee in my business, can i sack myself with a pay off and re-employ?

[drew]

How did you last appraisal go?

 

[Goldstone1976]

Basically, I am looking for a legal, tax efficient way to get money out of my business.

Generally speaking, dividends are the way to go; after maximising your allowable expenses, of course. Happy to help further by PM if helpful.

 

[Herr Tubthumper]

Basically, I am looking for a legal, tax efficient way to get money out of my business.

I think I'm correct in saying that even if you tick all the boxes and follow all the procedures correctly if HMRC can demonstrate its an artificial arrangement designed purely to lower your tax burden then you're in trouble.

 

[Frampler]

As a side-point. I was made redundant and offered to re-apply for a new role. That new role was identical to my existing role but instead of getting overtime if we worked weekends, they wanted us to work any 5 out of 7 days in a week.

Is that legal?

Broadly, yes. Dismissal and re-engagement on new terms in the employer's last option if an agreement on new terms cannot be reached, and redundancy exercises are often accompanied by a restructuring where key terms and conditions of the remaining employees are altered. However, I see lots of unfair dismissal claims arising out of circumstances where employer has got this wrong - it's always worth speaking to an employment lawyer or trade union if threatened with redundancy.

 

[Frampler]

I think I'm correct in saying that even if you tick all the boxes and follow all the procedures correctly if HMRC can demonstrate its an artificial arrangement designed purely to lower your tax burden then you're in trouble.

Spot on. HMRC are becoming very alert to one employee companies playing this type of game. It's much easier, and more lawful, to take the money out as dividends.

 

[Doctor Beaker]

Why not make some crappy remarks about your business in the local boozer, make sure people hear you - sue yourself for deformation, and settle out of court?

 

[Herr Tubthumper]

Spot on. HMRC are becoming very alert to one employee companies playing this type of game. It's much easier, and more lawful, to take the money out as dividends.

And as I understand it if you're not at-arms-length from the business, which clearly isn't the case with the poster, you will be definitely be in a spot of bother with this caper as well.

 

[Herr Tubthumper]

Why not make some crappy remarks about your business in the local boozer, make sure people hear you - sue yourself for deformation, and settle out of court?

Why not just give yourself a huge pay rise then retire?

 

[Blue Valkyrie]

As with all these dodges, if you are the first to think of it you may well get away with it. Once others cotton on, along with HMRC then you'll be in trouble.

 

[piersa]

As with all these dodges, if you are the first to think of it you may well get away with it. Once others cotton on, along with HMRC then you'll be in trouble.

As I said, I am after a LEGAL way of getting money out, just the most tax efficient way.

 

[piersa]

How did you last appraisal go?

Last appraisal was terrible but the xmas party was a riot.

 

[Herr Tubthumper]

As I said, I am after a LEGAL way of getting money out, just the most tax efficient way.

Have you tried asking an accountant?

 

[Tubby-McFat-Fuc]

As I said, I am after a LEGAL way of getting money out, just the most tax efficient way.

Become a limited company and go the dividends route.

 

[spence]

Does your employer have the right to see your passport if they choose?