Nervous newbie

[Forbes Young]

Is your accountant a contractor accountant or someone you just picked at random ?

Any decent accountant working in an accountancy practice should be able to set up a payroll for a client and give payroll/tax advice surrounding it. They shouldnt need to be a contractor accountant specialist. You cant just start taking money from the company and classing it as a salary - it needs to be properly recorded in payroll records and filed under the RTI provisions.
As specialist contractor accountants ourselves, this is one of the first things we go through with clients as part of their tax planning. Im wondering just what sort of advice some of the contractor visitors on this forum are receiving from their accountants and why their is no effective communication between the 2 parties.
Graeme Bennett ACMA MBA

[Sausage Surprise]

Hi

I dont know this question would have been answered millions of time but if you guide that would be a bonus

I have just started working as a contractor been three weeks now. My accountant has filed my HMRC paye and VAT flat rate application which would take a bit time to set up. I have recived payment for my last two weeks. since, I have started working can I withdraw my first salary?

Do I just transfer money as if it was just a normal transfer ?
I beleive its £10000 for this year so shall I withdraw £ 833 ? would that be ok to withdraw it right now while my Paye app is still pending? also I spent some money like travelling, books, stationary in december after I opened my company could I transfer that money frm Business to current account?

I know my accountant could answer just wanted to your opinion

thanks
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[Sausage Surprise]

You can't pay yourself a "salary" until your PAYE registration is sorted out, although you could pay a dividend if there are sufficient profits or take a small director's loan and repay it when your PAYE is sorted out.

The best thing to do is tell your accountant you need to take some funds from the company now and ask them how they would prefer the drawings to be treated - they should tell you to either treat it as a director's loan or as a dividend but the latter requires the right paperwork.

Keep records of the expenses you have paid for. You need to distinguish between company business expenses (I would put stationary and the books, if relevant to your trade, under this bracket) and your personal business expenses (travel, accommodation and subsistence normally).

YourCo can normally reimburse you for the former without any tax or reporting implications but you need to be aware of the various rules regarding the latter (and they will need to be reported on your P11D). As a general rule, now you have a business bank account and money in it, try and pay for all company expenses direct from the company account as it is a good idea to keep company and personal out of pocket expenses separate IMO.

Again, your accountant should be helping you with all this.

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[TheCyclingProgrammer]

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