Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year

Re:Microsoft Irish subsidiary paid zero corporate tax on £22... by tailspin2019 on Thursday June 03, 2021 @07:41AM (#27379762)

> If you're in the UK and still using dividends as a significant method to self-compensate, you may benefit from speaking to a (better) accountant.

I'm curious what you're eluding to here? Using dividends as a significant method to self-compensate (for single-person companies) seems to be a pretty common practice recommended by every UK accountant I've spoken to / used.

EDIT: Updated for clarification

[ Parent | on HN ]

Re:Microsoft Irish subsidiary paid zero corporate tax on £22... by callamdelaney on Thursday June 03, 2021 @07:50AM (#27379868)

There's roughly £12,000 tax free allowance on salaries and only £2500 on dividends. The common recommendation is to maximize your tax free allowance (pay yourself 12k PAYE) and then pay out anything else as dividends (though dividends legally require you operate at a profit).

[ Parent | on HN ]

Re:Microsoft Irish subsidiary paid zero corporate tax on £22... by tailspin2019 on Thursday June 03, 2021 @07:52AM (#27379894)

Yep, totally understand that.

That's the standard common advice that I'm referring to and that the post I replied to seemed to suggest is not what a (better) accountant would recommend.

Unless I'm interpreting that post incorrectly.

[ Parent | on HN ]

Re:Microsoft Irish subsidiary paid zero corporate tax on £22... by kowlo on Thursday June 03, 2021 @07:46AM (#27379823)

It's the advice I've received too, but I'm also new to most of it. One downside (I think) is that I can't take advantage of the R&D tax credits with this approach!

[ Parent | on HN ]