Draw salary from my limited company when out of contract

[psychocandy]

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).

5/12 * 52 *£73.10 = £1583 you could have claimed in JSA during that time ;-)

[psychocandy]

No confussion regarding this. I've continued paying dividends, and also they've confirmed that is absolutely fine. The issue seems to be with salary and expenses. They think if I'm not on a contract I'm not "working" so they literally said: "You need to see yourself as the employee of the company. No company would pay a salary to you if you are not doing any work for them, same rule applies to your Ltd company as well."

I'm a bit pissed off. Thinking what to do next.

Bulltulip. I've worked as permie for consultancy companies. Farmed out to clients but have spent time "on the bench". Basically in the office doing **** all. They still paid me - legally they have to!

Scary sometimes how clueless some accountants really are.

OP - You're not in south wales are you and using an accountant on the IPSE list? If so, I know him :-)

[psychocandy]

You must have free accountancy fees for life by now!

Your accountant is clueless. You don't even need profits to pay a salary, you can even create or increase a loss.

But surely this is not clever? i.e. spend the money on salary then not be able to pay CT or VAT bill.

But then certain business forums are full of people who do this and then moan later.

[Andrew@Wisteria]

But surely this is not clever? i.e. spend the money on salary then not be able to pay CT or VAT bill.

But then certain business forums are full of people who do this and then moan later.

To clarify, I mean still file RTI returns, but only pay if have cash available.

[MrMarkyMark]

FTFY

£1583 you could have claimed in JSA, although, you would have had to mix with a whole lot of other losers to get it, for a full 21 weeks.

[BlasterBates]

Of course you can pay yourself, you're marketing yourself for a new contract.

If you used the company to pay yourself on long term basis when there is no commercial reason that might possibly be a problem, but not for someone for a few months on the bench, who''s honestly looking for new contracts.

[northernladuk]

5/12 * 52 *£73.10 = £1583 you could have claimed in JSA during that time ;-)

Yeah but you are the only one that things £1583 is actually worth anything. By not paying his salary and divis for 5 months it's highly likely he won't be able to meet his monthly bills and maintain his lifestyle. 1500 quid isn't going to keep his cleaner going let alone his life style. Arguing claiming JSA is legal is fine. Sprouting on that £1500 over 5 months is a good thing.... have some self respect man. Not everyone is a penniless contractor.

[MrMarkyMark]

Yeah but you are the only one that things £1583 is actually worth anything. By not paying his salary and divis for 5 months it's highly likely he won't be able to meet his monthly bills and maintain his lifestyle. 1500 quid isn't going to keep his cleaner going let alone his life style. Arguing claiming JSA is legal is fine. Sprouting on that £1500 over 5 months is a good thing.... have some self respect man. Not everyone is a penniless contractor.

Sometimes, I think he is on a JSA contractor "recruitment drive".

[psychocandy]

FTFY

Ha ha. Not denying it but you can do a lot worse to me than call me a loser to make me cough up £1500.....

[pr1]

Yeah but you are the only one that things £1583 is actually worth anything. By not paying his salary and divis for 5 months it's highly likely he won't be able to meet his monthly bills and maintain his lifestyle. 1500 quid isn't going to keep his cleaner going let alone his life style. Arguing claiming JSA is legal is fine. Sprouting on that £1500 over 5 months is a good thing.... have some self respect man. Not everyone is a penniless contractor.

not everyone is as rich as you

(self edited for professional forums )