Limited Co+Withdrawing Dividends or Profit

[jsnetman]

Hi All

I'm currenlty full time but itching to go contracting for increased earning potential. I know it's risky but I have made up my mind. The plan is to setup a Limited Co as soon as I land the first contract, I am unclear on one aspect of a Ltd and cannot come up with any results via google, namely how and when you can draw company profit or dividends and what the process is, can it be done on a monthly basis? I know from reading you should pay yourself a minimum wage but that would not be enough to cover monthly outgoings and living expenses hence the question about profit and dividends.

Thanks in advance

[SimonMac]

http://forums.contractoruk.com/searc...earchid=418404

[jsnetman]

Sorry just found out what I want on this forum.

[Hex]

Sorry just found out what I want on this forum.

Don't be sorry - that's good!

[northernladuk]

http://forums.contractoruk.com/searc...earchid=418404

I used to do this until someone quite rightly pointed out that this doesn't work for other people trying to click the link. It refers to your search ID and doesn't include the search terms so doesn't work sorry.

To the OP. I am glad you made the decision to embark on a different style of working without understand the most basic yet most important aspect of it. There are plenty of links to the right hand side and there is an advance search option to use. Everything you can possibly ask at this stage of your your new career has been asked a thousand times or is covered in the first time guides.

Also do a search for the word bench and warchest as this will pull up the bad side of this type of work so at least you are fully versed in the fall out as well as the benefits.

[Wanderer]

The plan is to setup a Limited Co as soon as I land the first contract, how and when you can draw company profit or dividends and what the process is, can it be done on a monthly basis?

You will get yourself in a big old mess if you try to run a company without an accountant so get one engaged from the start to help you form the company properly and advise you on the salary/dividend/income splitting/IR35/share structure.

Ask them to get you some first timers guides to read through and then get them to talk you through your specific circumstances. Any accountant worth their salt will be more than happy to talk it all though with you to get you started.