Directors loan to pay my salary?

[Rafd]

I have just started a contract through a new Ltd and have not yet earned anything this tax year (long holiday!). Ideally I would like to pay myself up to the 10k threshold as salary before April. Due to the timings of the invoices my Ltd is unlikely to have sufficient funds to do this before April. Can I lend my Ltd money to pay my salary (and possibly even dividends)?

Cheers

[Mincepie]

ask an accountant

[Rafd]

Will do, but I have realised a second opinion is often a good idea..

[SpontaneousOrder]

So you want to loan yourself with money that doesn't exist, because you can't pay yourself with money that doesn't exist?

[Contreras]

As I understand it the company has issued invoices and lacks the cash flow to pay salary.

Declare the salary via RTI as normal. Pay the NI. Enter the remainder in the accounts as a transfer into the DLA. Company pays out when cash flow allows. Simples.

IANAA but that's what I would do.

[Alan @ BroomeAffinity]

Yes you can do that.

[mudskipper]

Not for divvies though - they have to be paid out of profit.

[Alan @ BroomeAffinity]

Not for divvies though - they have to be paid out of profit.

Indeed. But, if there's been income generated there's prob profit there.

[SpontaneousOrder]

Can I lend my Ltd money to pay my salary...

I should have read that twice.