Salary from two companies

[NoviceContractor]

Hi,

I was in a permanent employment earlier. I gave my notice to my employer and started contracting within notice period as I had some holidays left so I took those and started contracting. My employer did not pay me my salary in Sep month as they wanted to do full and final settlement in one go.
I started contracting from 23rd Aug 11 and was on holiday from my previous employer since then.
I left my employer completely on 09 Oct 11 and they paid me final settlement in October 11 salary.

So my previous employer paid me Aug and Oct salary but not Sep salary.

Since I started contracting from August so I withdrew salary of Sep 11 from my Company.

Now I am in a confusion. Should I withdraw Oct salary from my personl company as well or I should not? Is there anything which I should keep in mind?
Of course I want to minimise my tax libality.

Please guide.

Thanks

[northernladuk]

What does your accountant say?

There is also another thread on exactly the same topic only 5 posts down from yours. There is also 2 other further posts on this topic embedded. You can find it here

http://forums.contractoruk.com/accou...threshold.html

EDIT : BTW how is Edinburgh?

[NoviceContractor]

What does your accountant say?

There is also another thread on exactly the same topic only 5 posts down from yours. There is also 2 other further posts on this topic embedded. You can find it here

http://forums.contractoruk.com/accou...threshold.html

EDIT : BTW how is Edinburgh?

Thanks northernladuk,

Edinburgh is nice. Thanks.

My question is regarding- is it ok if I get salary from two companies in the same month?

Thanks

[northernladuk]

Thanks northernladuk,

Edinburgh is nice. Thanks.

My question is regarding- is it ok if I get salary from two companies in the same month?

Thanks

I didn't read these threads but surely if you want to be tax efficient surely the question you should be asking is 'Do I have to pay myself a salary from the LTD as I am already over the threshold?'

Of course you can have two salaries but is it the most tax efficient.

[NoviceContractor]

I didn't read these threads but surely if you want to be tax efficient surely the question you should be asking is 'Do I have to pay myself a salary from the LTD as I am already over the threshold?'

Of course you can have two salaries but is it the most tax efficient.

Thanks northernladuk,

[tractor]

..

Thanks northernladuk,

Edinburgh is nice. Thanks.

My question is regarding- is it ok if I get salary from two companies in the same month?

Thanks

It is ok.

The P45 that you recieve from the 1st co will detail your earnings YTD and your tax code assuming your affairs were up to date at the point of leaving.

Any payroll administered by or for your current employment will take that information into account and you may end up owing slightly more or less tax from the overlapping period but this will automatically be adjusted by reference to the tax tables in your next PAYE payment period.

If you are not operating PAYE, then any over/underpayment will be calculated from the SA form you submit for this tax year.

NI might be slightly different but I have not kept up with the recent changes. They did at one stage change the rules for directors to take into account that they may be paid quarterly or more irregularly and therefore be able to take advantage of the NI ceiling unfairly.

As always, ask your accountant. If you don't have one get one. If your accountant cannot answer the basic question satisfactorily, get another