Draw salary from my limited company when out of contract

[anandan]

Hi,

I have an Limited company (A) where I am the only Director, and from where I draw monthly salary. The company (A) gets biweekly income from another company (say Cisco) where I work as a contractor.

The contract with that company is going to end this month end, and I am planning not to engage in contract for a month. My doubt is, Can I still draw salary from my limited company (A) for next month, while the unlimited company is not getting any income from any other source (Since I am not engaged in any contract)

Thanks

[cojak]

Unlimited company?? What is that?

You are either a Limited company, a sole trader or you are employed by an umbrella.

What are you? How do you pay your taxes??

[anandan]

Limited (My mistake, corrected my query)

Thanks

Unlimited company?? What is that?

You are either a Limited company, a sole trader or you are employed by an umbrella.

What are you? How do you pay your taxes??

[gables]

Unlimited company?? What is that?

You are either a Limited company, a sole trader or you are employed by an umbrella.

What are you? How do you pay your taxes??

Not withstanding answers to the above... but if you're a limited company with sufficient funds then fill ya boots i.e. pay your salary as normal if you want.

[cojak]

Not withstanding answers to the above... but if you're a limited company with sufficient funds then fill ya boots i.e. pay your salary as normal if you want.

It makes sense now!

And What Gables Says - you are employed by your company so pay yourself a salary as usual (you need to make sure that you have enough to pay your taxes, so it's not a good idea to be on the bench for too long).

[anandan]

Thanks all.

Is there a concept of paid annual leave in my case, i.e. me as Director as well as the sole employee. My doubt comes from a unrelated topic (ILR - Indefinite Leave to Remain). I need to show "Evidence of all work-related absences" when I file my ILR. In normal cases, i.e. working for a employer, you could get a leave authorization letter from your employer. I am not sure how it would be in the case of self-employed.

Thanks again !

[northernladuk]

And it would be a good idea to engage an accountant if you don't fully understand how to pay yourself. It's pretty fundamental.

[psychocandy]

Can't claim JSA though if you continue to pay salary when out of contract {{hard.hat.on}}

[SlipTheJab]

Can't claim JSA though if you continue to pay salary when out of contract {{hard.hat.on}}

<boxing announcer voice>Leeeeetttttsss get ready to rumble!</boxing announcer voice>

[AnotherGuy]

My accountant stopped my payroll the moment I was more than 1 month out of contract. So not really sure if there is a legal requirement to do this.
Also I couldn't claim expenses anymore other than travel to do interviews.

It was not a leave, nothing planned, just out of contract looking for another one.

I'm not sure if this is right.