If you have a LTD and took all as salary rather than sal and divs, can you change you salary amount month on month in line with the income you recieve into the ltd ? I would of thought you can but Im not sure, would it screw up the PAYE side of things though in terms of working out what they think you should pay each month ?
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Probably easier to keep the salary constant and then specify a bonus which varies with profit. Or just have a single bonus at the end of the year to drain the extra profit out. -
Assuming the cash is there, you can pay whatever salary you wish and this can be changed every month if necessary.Originally posted by Bumfluff View Post
However, this does not sound very tax efficient but no doubt you know this?
AlanComment
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Having worked on commission-based payroll applications ("multiply the first 10 sales each month by the salesman's number of years with the company. Multiply the next 15 by his shoe size, unless it's Double Dutch Week, in which case..."): yes you can vary it every payment period. And yes it can do your nut in, especially when you mess things up 1 month and have to sort them out retrospectively the next.Comment
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Isnt it the only option though assuming you fail IR35 ? I know I can pay some into a pension but how can I make more tax efficient ?Originally posted by Nixon Williams View Post
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If you fail IR35 then most of your income does have to be paid as salary, although do not forget the 5% allowance, legitimate expenses, pension contributions etc.Originally posted by Bumfluff View PostIsnt it the only option though assuming you fail IR35 ? I know I can pay some into a pension but how can I make more tax efficient ?
AlanComment
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