Was PAYE For Half This Year- Do I Need To Take Salary?

[joey122]

So started contracting a couple of months ago after earning about 20K through PAYE.

Given I ve exceeded my tax free allowance and also that I do not need any money can I not take a salary for this year?

Do I need to give myself payslips saying 0?

[mudskipper]

I'm in the same position - my accountant said I should take some salary before the end of the tax year, but that it would not be unusual for a company director to wait a couple of months to let funds build up. On her advice, I am taking a salary from December - I started working in October.

I guess the same would apply in your situation - although of course your accountant may say different!

[Maslins]

No need to take a salary at all if you don't want.

Whilst (ignoring possible dividends) you're still in the basic rate band it's marginally worth still paying the token £476/month, as although this will attract personal tax at 20%, it won't attract NI (which is per job, rather than cumulative across all income), and it'll reduce your corporation tax bill by 21%.

ie pay 20% tax but save 21%...so like I say, marginally worth it.