Draw salary from my limited company when out of contract

[northernladuk]

You really need to understand your business, your clients and where you got in to all this better. There is no excuse for this level of understanding. You run your business not your accountant.

[Danglekt]

Your accountant stopped you getting paid?

Is it actually your mum who did her AAT in the 90's?

Income doesn;t matter, as long as you have profit in the company (i.e. enough to cover all your tax liabilities with some to spare) you can take as much or as little for as long or as short of a period as you like - until you use up all the profit.

[TheFaQQer]

Also I couldn't claim expenses anymore other than travel to do interviews.

That sounds rubbish to me.

[northernladuk]

Sounds more like you are running a MSC setup which is very bad.

[AnotherGuy]

Sounds more like you are running a MSC setup which is very bad.

It is a Ltd Company as usual, I'm the only director, 100% shares, I have an accountant and they run the payroll. I've been paying myself £883.33 every month until I finished the contract and then they told me to stop paying myself salary and claiming expenses, they stopped the payroll also on their side.

I have to say they reduced their monthly charge, which is nice but...

Their words:

"We have to stop your payroll until the company don't start trading again. Please note you can't claim any expenses until the company is not active again. Travel for interviews is allowed when you are looking for the contract but other expenses can't be claimed."

[TheFaQQer]

That doesn't seem like good advice, or grammar to me.

If my accountant told me that, I'd be on the phone to another one looking to see how to move to them.

[northernladuk]

But the company is active, just with no income. It couldn't be the OP has given the accountant misleading information? But still, you should know enough about what you do to challenge this.

I'd get rid of this setup as soon as possible.

Either that or pass his details to PC. Sounds like they will get on well.

[DelboyTrotter]

The longest bench-time I had was 5 months....not a problem paying salary/dividends during this period as I had built up a warchest (excluding the Corp Tax & VAT Liabilities which were separately covered).

[AnotherGuy]

I have plenty of funds in the company to cover all the taxes and several months of salaries, and obviously I can see how not paying my salary for a few months will have an impact in my tax liabilities (corporation tax) so I'm really pissed off now after all you guys are telling me.

I will contact them asap.

[pr1]

trust your accountant unless your accountant is wrong...