Mortgage Repayment from Contract Pay

[Ilu]

Hello Forum!

I am aspiring to go contracting via my LTD co. I please need advise on how i could make funds available for my existing monthly expenditures like mortgage repayment from my contract pay. Iam currently a permie.

Thanks very much

[chris79]

You run a payroll and pay yourself a wage out your company, or you can hold a general meeting and declare funds in the business as 'profit' which get paid to shareholders in the form of dividends. You can also do a mixture of both to gain the maximum tax saving providing your contract is operating outside IR35, otherwise you are limited to taking the funds only as PAYE wages.

Ideally for someone in your position you should look to get an accountant who can do all this, or go to an umbrella company who will also do all this for you..

Alternatively you can teach yourself how to run a payroll and the ins and outs of limited company administration and do it all yourself.

[malvolio]

or go to an umbrella company who will also do all this for you..

No they won't. They'll pay you under PAYE as a permie.

Ilu - these really are the basics you have to know anyway. Go read the guides we keep recommending to all first timers, then ask sensible questions.

[chris79]

No they won't. They'll pay you under PAYE as a permie.

Ilu - these really are the basics you have to know anyway. Go read the guides we keep recommending to all first timers, then ask sensible questions.

Sorry just read it back and the way I wrote it does sound misleading, I meant if you fail IR35 or don't want to administrate a limited company then umbrella will do everything for you, and yes you will be paying full PAYE.

[DaveB]

Hello Forum!

I am aspiring to go contracting via my LTD co. I please need advise on how i could make funds available for my existing monthly expenditures like mortgage repayment from my contract pay. Iam currently a permie.

Thanks very much

Read the guides on the right hand navigation bar for First Timers, Trading Structures, Legal, Company Formation etc.

Then go to the PCG website and read everything they have for newcomers.

Then come back here when you have specific questions not answered in those guides.

[Ilu]

Thank you all.Much appreciated