Originally posted by psychocandy
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Paying salary in one go
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Originally posted by northernladuk View PostWhy don't you up the 75.k to just over the threshold so you pay some NI so you can claim more on JSA?
i.e You need to earn minimum of £A to qualify but £B before you start paying so make sure salary is between A and B.Rhyddid i lofnod psychocandy!!!!Comment
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I think HMRC doe understand the idea of an annual pay period. So NI would be fine - for a director - using the appropriate method. Can you do it for PAYE? Don't think so, so would attract a heap of tax in the month it was paid and slow rebates or reclaim on the SATR.
Also it would need to be an accrual in the books, dependant upon when the corporate year end was of course.
RTI had problems with it, but trying to be fixed.
HM Revenue & Customs: Real Time Information and annual schemesComment
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Originally posted by psychocandy View PostReason I understand is that its because this way no tax or NI is due (although no NI is credited) which leaves just CT on any dividends.
BUT, I guess, if for whatever reason, part way through the year you stop paying a salary, then it could end up with the situation that you don;t use your full tax allowance.
Originally posted by psychocandy View PostSo, why not just pay yourself the whole £7500 up front at the start of the year when you can? Is there any reason you can't do this? Apart from the fact that it looks a bit dodgy I guess.
lol.
Learned opinion is that advance salary effectively creates a director's loan - it's difficult to show that the company has no right of recovery. Will be interesting to see if the new regime of RTI changes this view.Comment
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Originally posted by northernladuk View PostWhy don't you up the 75.k to just over the threshold so you pay some NI so you can claim more on JSA?Comment
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Originally posted by Old Greg View PostBeat me to it! He can sign on 51 weeks per year.Rhyddid i lofnod psychocandy!!!!Comment
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Originally posted by Contreras View PostLearned opinion is that advance salary effectively creates a director's loanComment
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Originally posted by CheeseSlice View PostSurely if he was to log it as 'net salary and bonus' then NICs and PAYE tax would be due. Just like a one off bonus, no?Comment
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