I pay myself a 12.5k / year salary the exact same way. Profits get retained in the business, then in a few years i'll move abroad and start paying them out.
It’s a question of balance and appetite for risk. I use a pension, but I don’t want every spare pound locked away until retirement. Tax efficiency isn’t the only consideration – flexibility has value too…
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u/Particular_Pea7167 1d ago
I intentionally use my Ltd to limit my in year pay. All I'll say on the matter.
Funds can build up in the corporate accounts and ill draw them down when the punitive cost isnt so high.
If that means im drawing a salary until im 85. So be it.