Paying a wage out of Ltd co. but not actually 'working'..

[Bengal]

WHS+ his advice maybe be offered with much gratiousness, goodwillyness and cheapness, but comes with little use-ness.

A Ltd co can pay a wage to any loafer it likes, director or no, for as long as it likes - nuff said. After all, who says that the Director is not doing 'research' which happens not to generate company income at that moment .

Don't follow what you are getting at. The point I'm trying to make is, sure you can pay a salary to a person for ever and a day but if you pay it as salary, you will incuur an additional cost of 12.8% NIC as an employer, this rate goes up in April 2010............so there have to other ways of doing it, so whats useless about that?

[Turion]

Because you were rambling on about it not being legal, which it is. Salary from a non trading co may not be the best option but it is legal and does register NI, which is a benefit

[Bengal]

Oi! why aren't you picking on me as well. My post was equally insulting though definitely more humourous and subtle.

I didn't necessarily find your comments insulting but was curious (see my post just above this post of yours).

It gets my goat when someone slags of someone without adding there own view (that is of course if they have the nonce to have a view) and without considering what I might do for a living!

[Bengal]

Because you were rambling on about it not being legal, which it is. Salary from a non trading co may not be the best option but it is legal and does register NI, which is a benefit

I don't see anyware in my post saying anything about what is being proposed is illegal. I was merely pointing out some facts around the tax and NIC position and also a potential approach of HMRC but then adding a couple of possible get outs (or solutions).

HMRC are getting smart to what goes on out there and are increasingly looking to recatagorise payments into something else, when looking at the facts. They are desparate to increase the tax/NIC take.........

[TinTrump]

...thresholds that are likley to be in place going forward.

http://forums.contractoruk.com/gener...uzz-words.html

That will aggravate someone.

[BolshieBastard]

Beats me why some people have difficulty undertsanding just because the co may not have any roles or income at present, you somehow cant 'take a wage' from that co!

******* weird or are some people just incompetent permies who've gone contracting?

[chris79]

Beats me why some people have difficulty undertsanding just because the co may not have any roles or income at present, you somehow cant 'take a wage' from that co!

Yeah beats me how my wife does the books for my company yet Hector says I'm income shifting, beats me how I rent out my services to clients yet he also thinks my dividends may not be legal and wants NICs/tax paid on them. Beats me why I have to waste my own money to 'insure' against this bullsh*t created by some 'have cake, can eat' public purse funded dogmatic half-day working loafers who wear suits from M&S...

Sometimes employment and tax laws are not so black and white and seeking clarification on such issues is a sensible thing to do.

******* weird or are some people just incompetent permies who've gone contracting?

Or sensible for double checking an unknown situation before going in feet first...