Hi, my situation is I haven't had a contract since Oct 2008. <my choice> I started paying myself £475 salary a month in April 09. This was from profit left in company and my intention was to keep up the N.I contributions. I checked with my accountant who sent me info. I received year end report for 2009 today and Accountant had put nothing in the salary section, but instead counted it as dividend payments.
I phoned him and he said that as my company had not traded I couldn't pay myself a salary. Is this right? He also mentioned P35. They originally said I could pay myself a salary. I am trying to stay calm, but if I had known this in April '09 I could have taken the profit out of the company and put it in a decent savings or ISA account.
I find accountant rather hard to talk to as he just ends up repeating things back to me rather than explaining! I am thinking of changing accountants.
Thanks for any advice,
I phoned him and he said that as my company had not traded I couldn't pay myself a salary. Is this right? He also mentioned P35. They originally said I could pay myself a salary. I am trying to stay calm, but if I had known this in April '09 I could have taken the profit out of the company and put it in a decent savings or ISA account.
I find accountant rather hard to talk to as he just ends up repeating things back to me rather than explaining! I am thinking of changing accountants.
Thanks for any advice,
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