LTD Company paying ones self

[markmarkymark]

Yo all.

If there is anyone on here you has a limited company they are a Director of and who minimises tax by taking a small salary (etc etc you will know what this means if you do this), could you please PM me - just have a few quick questions...!

cheers

Mark

[Paul K]

I would think you would be better of seeking the service of an accountant to help sort this kind of thing out when first starting out. It will save time, money and effort in the long run as the accountant will know all the tricks, forms, procedures etc and will be able to advise you of exactly what you can and cannot do.
Seeking advice from others in the same position is only going to help up to a point, after that you will need to look for professional guidance to make sure everything is correct and that you are covering all the bases.

[markmarkymark]

thanks Paul..

actually I have a good accountant and I know what I am going to do - I was just after hearing about other expereinces. Being paid by dividends for example - in theory it can be once a month (with a board meeting etc) - but in practice has the tax man ever asked questions like (hmmmm mate, looks like you are paying yourself a salary)....etc

[handyman]

Hi,

My dad use's these (http://www.brookson.co.uk/webpages/about.php) people. They do everything relsting to running your business under their umbrella and they charge £25 per week which is a bargain.

hope this helps.

[Graham]

If there is anyone on here you has a limited company they are a Director of and who minimises tax by taking a small salary (etc etc you will know what this means if you do this), could you please PM me - just have a few quick questions...!

Well I do this (Salary of £8K a year, then dividends either at the end of the year or at the end of a quarter) but why do you want to keep it to PM? It may be of use to someone else too.

[SMHarman]

If the taxman comes a visiting it is all about reasonableness. Say if your small salary cannot pay the mortgage and is the only income into the house the IR might get ****y.

Say the company has highly variable earnings, it might be more reasonable though.

Say your salary pays a sensible subsistance and then a profit is taken 1/4ly (by divi) when you have created your 1/4 end accounts then that looks like you are able to live on the salary and enjoy the divi (and in a poor 1/4 the divi would be smaller).

As a company director you do need to pay all your NIC in an up front kinda way though, you cannot avoid NIC by having fewer pay cheques (your accountant will point this out)

This is an area where a good local accountant will do you right though. Ask if what they propose has ever been audited and what problems such auditing might entail.

While I am an accountant I am out of practice and in industry and the legislation in this area has moved on. Nobody but the IR can give you a definate answer, but if you ask the IR you are opening up a big can of worms so you need to trust your accountant. If you don't find a new one.

[Paul]

.... could you please PM me - just have a few quick questions...!Sorry but I take exception to this - this forum is for people to help others by posting their questions, and getting the answers in public, which may then help others. In future please do not come here requesting help via private messages. We do not finance and support this site for your personal, private, benefit.