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Draw salary from my limited company when out of contract

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    Draw salary from my limited company when out of contract

    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
    Last edited by anandan; 22 September 2015, 11:28. Reason: Cojak pointed out a mistake, Unlimited instead of limited

    #2
    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??
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Limited (My mistake, corrected my query)

      Thanks

      Originally posted by cojak View Post
      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??

      Comment


        #4
        Originally posted by cojak View Post
        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.

        Comment


          #5
          Originally posted by gables View Post
          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).
          "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
          - Voltaire/Benjamin Franklin/Anne Frank...

          Comment


            #6
            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 !

            Comment


              #7
              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.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Can't claim JSA though if you continue to pay salary when out of contract {{hard.hat.on}}
                Rhyddid i lofnod psychocandy!!!!

                Comment


                  #9
                  Originally posted by psychocandy View Post
                  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>

                  Comment


                    #10
                    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.

                    Comment

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