Paying Yourself Bonus as Contractor

[xenomorph]

So I am outside IR35 and have done some good work over November last year and thought I would pay myself a bonus if I can.
Would this just get added to total salary in terms of tax and NI for the year? Of course if company would need to pay NI towards it also.
Or would doing this cause issues with HMRC?

[malvolio]

So I am outside IR35 and have done some good work over November last year and thought I would pay myself a bonus if I can.
Would this just get added to total salary in terms of tax and NI for the year? Of course if company would need to pay NI towards it also.
Or would doing this cause issues with HMRC?

I call "Troll". Unless, of course, you have never heard of dividends and what they are used for.

Between this and the other post, are you really a contractor with a company working outside IR35? If you are, I suggest you go back to the user guides.

[NotAllThere]

Would this just get added to total salary in terms of tax and NI for the year?

Yes.

Anything more stupid to ask?

[jamesbrown]

Yes.

Anything more stupid to ask?

There's something more stupid?

[northernladuk]

There's something more stupid?

Yep... This one https://forums.contractoruk.com/acco...4-expense.html

[Snooky]

It may be a silly question and possibly a troll but there's no reason not to give a polite response or no response, since this is supposedly a professional forum and not General.
Quite surprised to see a derisive answer from a mod TBH, especially one who just yesterday said "Please be constructive on the professional forums".

[sadkingbilly]

Yes.

Anything more stupid to ask?

hypocrite

[ladymuck]

Short answer is that it's your company, you can pay yourself whatever you want. If it's not a properly documented dividend then any withdrawal is essentially treated as normal, taxable income. It doesn't matter if you call it a bonus, a stipend, a wage or a carrot.

[northernladuk]

It may be a silly question and possibly a troll but there's no reason not to give a polite response or no response, since this is supposedly a professional forum and not General.
Quite surprised to see a derisive answer from a mod TBH, especially one who just yesterday said "Please be constructive on the professional forums".

Well in theory yes but it's an internet forum of ,what should be, professional contractors. You ask stupid, ill informed, lazy questions you are gonna get it. There is a level of questions to be expected IMO and if you don't meet that bar you are gonna get some stick. Those that want to answer properly can do so but can't blame others for getting frustrated and annoyed. It happens on any forum I've ever been on, bikes, cars, parenting and even local groups on FB. You think we are bad try the same level of question on Mumsnet.

It is pointed out in the newbie guides by Cojak
https://forums.contractoruk.com/welc...r-newbies.html

So basically, we will help where we can but we dislike lazy posting. If you find the above steps too much of a hassle, you deserve all you get.

Yeah I get the theory would should all be polite and nice but this is the internet and we are real people so not nice answers are gonna happen. A kick up the arse may put some people off posting but there is a good chance it will be a wake up call for them to do a bit more research and take control of their own situation so does kind of help in the long run.

[malvolio]

It may be a silly question and possibly a troll but there's no reason not to give a polite response or no response, since this is supposedly a professional forum and not General.
Quite surprised to see a derisive answer from a mod TBH, especially one who just yesterday said "Please be constructive on the professional forums".

A short, sharp answer to a stupid question is not being rude for the sake of it. Over the years we have seen a lot of them where the poster is clearly missing some vital knowledge of the world of work they are now living in. They range from a zero understanding of company law to a failure to separate LtdCo and real person. A quick one liner to make them think a little more about what they are asking can be very effective.

Equally a lot of us have given detailed explanations of some arcane piece of lore to help someone out and seen zero response - often not even a "Thanks" tick. Which makes you think that either they are simply ungrateful boors or weren't actually looking for an answer in the first place. What's worse is the new post from the same poster asking yet another stupid question...

If you use your half hour free consultation with an accountant to ask them to give you a detailed business plan for the next ten years, what level of response would you expect to get?

There is a vast amount of information out there, even on the right hand side of this page. If you can't be arsed to at least read it, why should those of us who have do the work for you?