Anyone earning 'big bucks' (£200k+ per year)? Would love to hear your story!

Housey said:
No job is secure and being employed or self employed has zero influence really. If you are good you will find work, if you are not, unlucky, lazy or simply in a saturated area/profession you will struggle no matter what your position is. Both sides have benefits and risks.
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This is what I always tell people...
 
zegna said:
Very very few people on £200k+ are earning the whole amount on PAYE..

Stock options, pensions, dividends etc..
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I wouldn't say that's entirely true.

In every company I've worked in so far (IT software), top sales guys will be earning £175k - £300k ... all through PAYE.
 
Pudney said:
I'm interested how you avoid the child tax charge. My understanding is dividends count as income for the test.
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Dont you just love the inconsistancies of HMRC. They treat divis as income for Child Benefit (if you are correct, I dont doubt you are as you are an accountant) but treat divis as not income when it comes to personal contributions to your own private pension.
 
Basher said:
I wouldn't say that's entirely true.

In every company I've worked in so far (IT software), top sales guys will be earning £175k - £300k ... all through PAYE.
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Same, as far as I'm aware a lot of high up managers in multinationals will be salaried staff memebers being paid well into 6 figures via PAYE.
 
Most people earning 200K in full employment do so on PAYE. The poster who suggested otherwise has zero experience of what he/she is talking about.
 
Pudney said:
I'm interested how you avoid the child tax charge. My understanding is dividends count as income for the test.
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They do, but if he has a wife who doesn't work (or even earns less than the child benefit cut off) he can structure things to maximise income while still keeping salary + dividends under the limit.

e.g. let's assume a wife who doesn't work. Split company shareholding so that the wife owns 55.5% of the shares.
Take £10k in salary himself and then pay £90k in divis.
You'd then pay around £5k income tax (possibly a bit more, haven't done the proper sums) and end up with just about £95k net between the two and still be able to claim child benefit.

Obviously this assumes a daily rate that's enough to allow for taking £100k out of the company in a year.
 
£90k divididends.... That's about 25% of the 50 above higher threshold, talking ~12k income tax, not 5!

edit: Sorry just re read and see you said split the divi. Splitting 50:50 with a spouse would be frowned upon by HMRC though.
 
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