New to Limited Company

[SueEllen]

This is always a difficult one to answer. Just bought a settee from DFS and the salary question came up.

In the end, couldnt be arsed to explain and just said £7K for salary. Still got the interest-free mind.

They most of thought you had assets they could come and strip from your house.

[Support Monkey]

This is always a difficult one to answer. Just bought a settee from DFS and the salary question came up.

In the end, couldnt be arsed to explain and just said £7K for salary. Still got the interest-free mind.

Buying a sofa on the knock from DFS, I would rather sit on the floor

[psychocandy]

Buying a sofa on the knock from DFS, I would rather sit on the floor

Not the best quality stuff I admit. Just wanted a cheap soffa though.

[northernladuk]

Not the best quality stuff I admit. Just wanted a cheap soffa though.

and to go with you new sofa you have a new title...

psychocandy is slower than a 486

Gratz!!!!

[psychocandy]

and to go with you new sofa you have a new title...

Gratz!!!!

Excellent news all round then !!!!

[andresdrb]

Sorry to appear a little rude but I would have to question the quality of your research when any guide you find on here and many other sites including an endless number of threads on here all confirm that your account speaketh the truth. In fact I think you would be extremely hard pressed to find evidence that contradicts this.

Either your research is a little flawed or your understanding of the situation is. This process reduces the tax you have to pay legitimately so technically yes you are trying to avoid paying tax you do not have to.

Thanks for the answer, and yes, probably after only 2 months in the country and just 3 weeks as a contractor I still need to catch up with a lot of things, but would be nice to see If you would be catching up that fast with other country laws

[andresdrb]

Yes it it 100% legal provided you are not caught by IR35. You need to get professional advice on that.

If you have already taken a salary from a permie job this year and you've been paid over £7,000 already then you shouldn't draw a salary from your company - just take dividends until April 6th next year and then start taking a salary of £7,000 which you can draw tax free though your accountant can advise. If you take £10,000 you will pay more tax than you have to so tell your accountant you'll take no salary this year and £7k the next.



Absolutely right! But don't confuse the tax avoidance you are doing (which is legal) with tax evasion which is illegal. Avoiding tax is doing things like buying a bottle of booze in the duty free, driving a low CO2 emission car or putting your savings into an ISA or pension.

Forget about minimum wage legislation too, that simply doesn't apply to company directors like yourself.

Thanks so much to those that gave really helpful and clarifying answers.

Cheers