Hi,
I'm making a career change that means I will return to permanent employment. Currently I am director of my contractor ltd company that I take dividends and a regular PAYE salary from. It's being run cheaply (I run my own accounts via FreeAgent), and it has enough funds to operated without income (be steadily drained of cash) for another two years or so. I'm happy to leave it running rather than take entrepreneurs relief and closing, as I don't need all the cash in a lump-sum urgently this also gives me the flexibility to contract using the same company in my new career direction if I choose to in future.
My question: when I start a new permy job, must I stop taking salary? Will HMRC take a dim view of my being in legitimate business if I have two salaried jobs? Should I leave it running and only take dividends as a shareholder (not PAYE as an employee)? I assume there's no problem with just being a shareholder.
Many thanks.
I'm making a career change that means I will return to permanent employment. Currently I am director of my contractor ltd company that I take dividends and a regular PAYE salary from. It's being run cheaply (I run my own accounts via FreeAgent), and it has enough funds to operated without income (be steadily drained of cash) for another two years or so. I'm happy to leave it running rather than take entrepreneurs relief and closing, as I don't need all the cash in a lump-sum urgently this also gives me the flexibility to contract using the same company in my new career direction if I choose to in future.
My question: when I start a new permy job, must I stop taking salary? Will HMRC take a dim view of my being in legitimate business if I have two salaried jobs? Should I leave it running and only take dividends as a shareholder (not PAYE as an employee)? I assume there's no problem with just being a shareholder.
Many thanks.
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