What to Pay this year when have had perm salary for 4 months

[nairey]

Hi,

Had a look but cant find my answer to this. Sure its one of those where there is no obvious 'right' answer butgood to get thoughts.

I have switched from perm to contract this year but under my perm role received salary in this tax year of 20k+. I understand the options I have for the new 2015/16 tax year but want to know whats bext to pay myself for the remaining 7 months given the perm salary previously received.

From a tax/NI efficient point of view then I am guessing its to pay myself nothing and just take anything in dividends but not sure if this is sensible. IS still taking a 800/1000 per month salary seen as more commercial from a LTd compnay perspective even if this means I pay more NI.

Presume a few people have had the same situation when they switched so could to get the group consensus.

Cheers

[VectraMan]

IS still taking a 800/1000 per month salary seen as more commercial from a LTd compnay perspective even if this means I pay more NI.

"Seen as more commercial?" How? To who?

Pay yourself zero as salary; no need to even register until April. Then do your SA as soon as possible and rejoice in getting a refund.

[TheFaQQer]

IS still taking a 800/1000 per month salary seen as more commercial from a LTd compnay perspective even if this means I pay more NI.

If the work that you do would normally command a much higher figure than that, then to pay a low figure just to try and make something look "real", at the cost of paying more tax, seems to have little benefit that I can see.

[northernladuk]

Sorry to ask but do you have an accountant yet?

[Maslins]

"Seen as more commercial?" How? To who?

Pay yourself zero as salary; no need to even register until April. Then do your SA as soon as possible and rejoice in getting a refund.

This...though of course whether or not you get a refund, and if so how much it will be will depend upon how much you take in dividends in the next ~6 months.

[jamesbrown]

Sorry to ask

No you're not

[northernladuk]

No you're not

Actually I am for fear of upsetting those that think telling someone who doesn't have a clue to speak to a professional is bad advice.

I'm also on the naughty step so didn't point out this has been asked a lot and using the search as described in the thread below will get his answer..

http://forums.contractoruk.com/welco...uk-forums.html

The actual search is below...

https://www.google.co.uk/webhp?sourc...ntractoruk.com

Seem to be having a slew of newbies asking basic questions that should be directed at their accountants first for some reason... Odd...

[nairey]

Sorry to ask but do you have an accountant yet?

Yep have an accountant and I use Intouch who have set the company up and I can speak very highly of. Yes, am a newbie but spent a lot of time on here, the various documents and also pestering Intouch with umpteen different queries.

In terms of what to pay myself for the remainder of the year though does seem like a decision that ultimately falls with me rather than there being a definate right or wrong answer. Intouch have come back with the view that I could choose to pay myself nothing (and save on the NI) but paying myself something could be seen as more commercial.

Hence my query on here that may reach out to get a wider view on this from people who have been in a similar situation or other accountancy firms that may post on here.

[northernladuk]

Yep have an accountant and I use Intouch who have set the company up and I can speak very highly of. Yes, am a newbie but spent a lot of time on here, the various documents and also pestering Intouch with umpteen different queries.

In terms of what to pay myself for the remainder of the year though does seem like a decision that ultimately falls with me rather than there being a definate right or wrong answer. Intouch have come back with the view that I could choose to pay myself nothing (and save on the NI) but paying myself something could be seen as more commercial.

Hence my query on here that may reach out to get a wider view on this from people who have been in a similar situation or other accountancy firms that may post on here.

It does fall with you, to take expert guidance on someone that knows the your exact situation. IMO if InTouch says jump then I would jump.... except that Craig guy. If he said jump I would tweak his nose and send him to the bar for another round....

[TheFaQQer]

It does fall with you, to take expert guidance on someone that knows the your exact situation.

This is the key point. InTouch ask me each year about salary, and I listen to their advice and then tell them what I want to do, which is usually different from their advice. I know the thinking behind their advice, but I disagree with it, so I run my company in a different way.

That's not to suggest that their advice is worthless, but at the end of the day it's your neck on the line not theirs. Personally, I don't think paying £12k a year would class as a commercial salary, so pay less than that to pay less PAYE and NI.