UK Is property income a waste of my allowance when i can DIV all the way up?


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Hi all

I am a director of a LTD and I'm confused as to if i should keep hold of my personal rental property's
so 20k Rental profits my £12,500 PAYE (Have the Emp ni allowence) and a £17,500 Dividend payment makes up to £50k
From a personal point of view I am taxed £4,000 on property income on the £20k but only £2662.50 on £37,500 Div. You get £17500 more and will pay £1337.5 less tax! So you personally will keep just under £47k including the ni on the £12500 and £44,450 about £2,500 worse off with the rent!?.

Can someone please help me get my head around this? there is always enough profits in the company to pay myself £50k i dont want to pay corp tax then pay a big chunk out in div tax. how would any of you advise a client to pay himself in this situation most efficiently?
SO
I feel like im stuck in this £50k barrier how do you break it ?
the only reason i feel the property's are useful is incase you have a bad year work wise but profits are racked up already for this years tax year and wont be a problem paying again up to 50k with no property rental profits. hence leaving me worse off by £2500 again cos of the rent!

Alot of people will think thats great rental profits but from this perspective is it a waste or should i use the income to pay the tax after £50k? or is it just a case of making alot more money and paying alot more tax
Im confused i hope some one can help!
Cheers.
 
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Fidget

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Can you revisit the first para please. You start off with "...and easy to read", but actually, it's anything but.
 
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Can you revisit the first para please. You start off with "...and easy to read", but actually, it's anything but.
you're right sorry. I have removed that para
I hope you understand what i'm trying to say
What payment structure would anyone be able to recommend in an ideal world would like to go over £50k a bit..
 

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