I have a limited company with a healthy bank balance and up until recenly I worked through my Ltd Co. as a consultant. I gave my job up to go travelling and am yet to find a new contract. In the past whilst contracting I paid myself a minimum salary of approx £600/month and taken the rest as dividends. Now that I am no longer working (although still looking) can I still pay myself a salary and/or dividends?
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yes. -
Salary - yes.
Dividends from actual profit - yes
Dividends from money in the bank which isn't actually profit - no"See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested."Comment
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Don't forget, you can lay yourself off without closing company etc if you want to claim jobseekers allowance."See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested."Comment
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Another way of looking at it is: I presume you are a director of your company? If yes, you still get paid a fee for being so (salary).
Moscow is indeed correct that dividends can only be paid out of profits and not just available cash.Last edited by djhns; 3 March 2010, 13:39.Comment
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I am a director, so it's good to know I can still pay myself. There is accrued profit from previous years so I can therefore also pay myself dividends from this. There's still money put aside for VAT, Corp tax etc so that's OK
Thanks for the quick replies and I'll look into the laying myself off point.
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