Making my first company salary/dividend payment (SJD)

[mudskipper]

SJD recommended £7.5K to me, but said I could go for NMW if I preferred - tried to get into the whys and wherefores (plus the fact that I'm currently only working 2 days a week) but never really got to the bottom of it. I think the gist was that 7500 would allow you to pay a little tax and NI to keep HMRC 'happy'.

Anyway...

Like David, I was already in higher tax band based on permie earnings when I started contracting in October. However, because I'm now on a much lower salary for the rest of the year, tax goes back into standard rate, and I'm actually due a rebate with no further tax/NI to pay for the rest of the year. I imagine David will be the same - when you're taxed in permie world, they assume you will be earning at the same rate for the rest of the year. SJD did get the salary figures out to me fairly quickly, but if 'desperate' I'd suggest David pays himself say £500 salary to tide him over then makes a further payment of the difference when he's got the figures. I'm don't think the point at which you pay the salary, or if you were to split the payments matters.

[kaiser78]

In general terms I on average draw out daily rate * 10 from my limited company each month and let my accountant divvy up as salary/dividends when he completes my annual accounts. This leaves enough to cover any taxes and fees due plus a tidy lumpsum bonus each year

[trsisko]

I was told to pay my sallary on the 19th of every month but forgot they they told me this, so sometimes i would pay 5months unpaid salery in 1 go purely because iIwasnt working so felt uncomfortable taking it out of my business bank account when the funds were not so plentyfull.

is that allowed, I was still paying the vat due on time

[kaiser78]

I was told to pay my sallary on the 19th of every month but forgot they they told me this, so sometimes i would pay 5months unpaid salery in 1 go purely because iIwasnt working so felt uncomfortable taking it out of my business bank account when the funds were not so plentyfull.

is that allowed, I was still paying the vat due on time

Nice beer sess was it ?!!