Basically, I've got myself into a bit of a pickle and my personal account is running dry now. I have my annual salary at £12,000 and due to lack of business have not taken one for the last 4 months. Now that I have a short term contract, instead of paying myself for the last 4 months (I've already declared zero income for this period because I was chased up for PAYE), can I simply elect to pay the next 3 months to myself in advance?
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Can I pay myself the next 3 months salary in advance?
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You can, but it will be seen as a loan to you. Go careful if it takes your total loan value over £5,000 as it will become a benefit in kind.
You could increase your salary for the current month instead, although it will mean more tax. -
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Originally posted by Clare@InTouch View PostYou can, but it will be seen as a loan to you. Go careful if it takes your total loan value over £5,000 as it will become a benefit in kind.
You could increase your salary for the current month instead, although it will mean more tax.What happens in General, stays in General.You know what they say about assumptions!Comment
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Originally posted by MarillionFan View PostI regularly use 'directors loans' for cash flow elsewhere(include > 5k for a short while). There is of course the adage that 'if it all balances out at the end of the year' then it's all OK as well but a proportion of accountants/posters on CUK will deny this (in case you ever get auditted )Comment
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Originally posted by John Crowe View Postso do I...and although they are supposedly not legal, there are no fines associated..you can charge urself interest to get out of sticky situations'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by NadJ View PostBasically, I've got myself into a bit of a pickle and my personal account is running dry now. I have my annual salary at £12,000 and due to lack of business have not taken one for the last 4 months. Now that I have a short term contract, instead of paying myself for the last 4 months (I've already declared zero income for this period because I was chased up for PAYE), can I simply elect to pay the next 3 months to myself in advance?
You can therefore make a payment of £2,356 (£589 x 4) with no worries regarding loans or making an incorrect declaration.
AlanComment
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