Age: 32
Spouse’s/Partner's age: 31
Annual gross income from employment or profession: 70,000
(+ limited company income started March 2021 gross 3500 pm but erratic, not counted in take home pay as wish to build up first)
Annual gross income of spouse: 38,000 (due to drop to 0 in September 2021)
Monthly take-home pay: 6000 (will stay the same in September 2021 due to drawing directors income)
Type of employment: e.g. Civil Servant, self-employed
Both primary incomes public sector
Side income from limited company – not yet realised (have not drawn any salary)
In general are you:
(a) spending more than you earn, or
(b) saving? saving
Rough estimate of value of home 480,000
Amount outstanding on your mortgage: 330,000
What interest rate are you paying? 2.3% plus 300pm overpayment (KBC)
- This is not our "forever" home - a move is contemplated in 5-7 years
Other borrowings – car loans/personal loans etc
Car loan 480pm
House loan 500pm (family loan for unexpected remedial works to house – 30,000 outstanding)
Do you pay off your full credit card balance each month? No CC
If not, what is the balance on your credit card?
Savings and investments:
370 pm AVC (current value 8000)
200 pm investment account (current value 3000)
250pm (plus leftover cash at months end) into savings account (current value 2000)
Business account 15,000
Do you have a pension scheme?
Public sector plus AVC
Do you own any investment or other property? No
Ages of children: 5 months
Life insurance: My death only (I have far higher earning potential in the future even working part time in the event of spouse death) 500,000 lump sum assurance policy separate to PS benefits
Extra info:
Spouse taking unpaid maternity leave in September at which point further LTD earnings will be drawn as her salary (she is a director)
The house loan arose as part of a kitchen fitout (budgeted and saved as 20,000) which escalated to major remedial works arising out of structural/damp issues. Total project cost 60,000 – unexpected which wiped out previous savings. This finished in January 2021 but left us financially and emotionally drained.
Medium-long term: Salary projected to take a hit in 3 years for 2-4 year period after which my income will likely triple to anything between 150,000-250,000
Advice sought:
What should we do with the director income (beyond tax-efficient salary to spouse)? Is it silly to leave in account at mercy of corporation tax or should we draw as much as possible by years end? Can’t contemplate investments as we will likely need to draw on the cash in 3 years. This is a service-based company with no capital assets or liabilities to speak of. I bill for services rendered and spouse handles administrative duties.
Spouse’s/Partner's age: 31
Annual gross income from employment or profession: 70,000
(+ limited company income started March 2021 gross 3500 pm but erratic, not counted in take home pay as wish to build up first)
Annual gross income of spouse: 38,000 (due to drop to 0 in September 2021)
Monthly take-home pay: 6000 (will stay the same in September 2021 due to drawing directors income)
Type of employment: e.g. Civil Servant, self-employed
Both primary incomes public sector
Side income from limited company – not yet realised (have not drawn any salary)
In general are you:
(a) spending more than you earn, or
(b) saving? saving
Rough estimate of value of home 480,000
Amount outstanding on your mortgage: 330,000
What interest rate are you paying? 2.3% plus 300pm overpayment (KBC)
- This is not our "forever" home - a move is contemplated in 5-7 years
Other borrowings – car loans/personal loans etc
Car loan 480pm
House loan 500pm (family loan for unexpected remedial works to house – 30,000 outstanding)
Do you pay off your full credit card balance each month? No CC
If not, what is the balance on your credit card?
Savings and investments:
370 pm AVC (current value 8000)
200 pm investment account (current value 3000)
250pm (plus leftover cash at months end) into savings account (current value 2000)
Business account 15,000
Do you have a pension scheme?
Public sector plus AVC
Do you own any investment or other property? No
Ages of children: 5 months
Life insurance: My death only (I have far higher earning potential in the future even working part time in the event of spouse death) 500,000 lump sum assurance policy separate to PS benefits
Extra info:
Spouse taking unpaid maternity leave in September at which point further LTD earnings will be drawn as her salary (she is a director)
The house loan arose as part of a kitchen fitout (budgeted and saved as 20,000) which escalated to major remedial works arising out of structural/damp issues. Total project cost 60,000 – unexpected which wiped out previous savings. This finished in January 2021 but left us financially and emotionally drained.
Medium-long term: Salary projected to take a hit in 3 years for 2-4 year period after which my income will likely triple to anything between 150,000-250,000
Advice sought:
What should we do with the director income (beyond tax-efficient salary to spouse)? Is it silly to leave in account at mercy of corporation tax or should we draw as much as possible by years end? Can’t contemplate investments as we will likely need to draw on the cash in 3 years. This is a service-based company with no capital assets or liabilities to speak of. I bill for services rendered and spouse handles administrative duties.