First payment coming through as a Ltd - can I raid it?

[NotAllThere]

Originally Posted by Gonzo
1. Never overdraw the DLA by more than £5,000 otherwise you will run into Benefit in Kind issues.

WRONG - you may run into BIK issues if you don't pay interest to your Ltd on the excess

Not WRONG.

If you pay borrow more than £5'000 you will run into BIK issues. These being "if you don't pay sufficient interest on the loan, then you will have to pay income tax and NI on the interest your not paying".

To the OP. "Wages".

[Olly]

Not WRONG.

If you pay borrow more than £5'000 you will run into BIK issues. These being "if you don't pay sufficient interest on the loan, then you will have to pay income tax and NI on the interest your not paying".

To the OP. "Wages".

and I thought I was being pedantic.
You MAY run into BIK issues, not WILL
But then it depends on your definition of 'issues'. I'd say the majority would infer it to mean something negative and inevitable rather than possible solutions to avoid the bad stuff.
argh.....got better things to do...need breakfast

[London75]

Surely this is overkill, you're the Director, have a meeting with yourself and agree with yourself how much in dividends you want to pay yourself (very safe to go with up to 50% as someone else mentioned).

Write out a form saying the above and withdraw the money.

Send copy to accountant and say "I did that" so they can file it.

[Gonzo]

and I thought I was being pedantic.
You MAY run into BIK issues, not WILL
But then it depends on your definition of 'issues'. I'd say the majority would infer it to mean something negative and inevitable rather than possible solutions to avoid the bad stuff.
argh.....got better things to do...need breakfast

Of all the posts that I forget to add IANAA to it had to be this one.

It does depend on your definition of "issues" of course. For me, paying tax that could easily be avoided is most definitely an issue.

Hopefully the OP will be aware of the implications of overdrawing the DLA more than £5,000 now and that was the message that I wanted to get across.