Full Time Employment & Ltd Company Tax Implications
DanielRowles started this topic @ 16:34 on 21/04/2009
I am currently in full time employment but also do a little paid public speaking and I am in the process of building a revenue generating website.
My plan is to set up a limited company to pay my speaking and website income into, pay myself no salary and draw the profit as a dividend. Since I wont pay myself
a wage no PAYE will be needed (I obviously pay tax through PAYE in my day job).
As I understand it I will then have to do annual accounts and an annual return.
Is this a sensible plan and are my assumptions correct?
Many thanks for any advice.
Daniel
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RE: Full Time Employment & Ltd Company Tax Implications
Rally | 22/04/2009 01:00 PM
Hi there,
You can do this, it is a sensible idea.
But doing this can cause small problems when it comes to the businesses net profit as you may pay a more substantial amount of tax at the end of the year.
There are other ways of benefiting yourself and the business in terms of the amount of tax you have to pay.
BUT..
This depends on the turnover of the business and your annual salary.
If you would like to know some of the ways of taking advantage of your situation... drop me an email at raihan@bbkca.com
Hope this help
Raihan
RE: Full Time Employment & Ltd Company Tax Implications
clairejarrett | 23/04/2009 01:07 PM
I was advised by my accountant that you have to at least draw a minimum salary each month, I think it was £400, to avoid investigation by HMRC..?
RE: Full Time Employment & Ltd Company Tax Implications
DanielRowles | 23/04/2009 06:07 PM
I was wondering about this, but since I have a full time wage and this is a legal approach I'm not sure if this would be problem? Any thoughts anyone....
Thanks
Daniel
RE: Full Time Employment & Ltd Company Tax Implications
Peter W | 24/04/2009 09:07 PM
There is no requirement to pay yourself a salary, as long as you have no employment contract with the company.
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