IR35 paying out salary at end of year

[Craig at Nixon Williams]

Ah. Good point. So it is not literally necessary to empty the bank account, but the point is the same, calculate salary (and pay tax).

Coming up to company year end, is it possible to calculate future salaries? Does that reduce profit in this year?

You need to calculate the salary at the end of the year and pay the tax. There is no actual requirement to actually make payment for the salary. The salary is calculated based on the invoices that have actually been paid during the year.

As far as the accounts go, you should accrue the deemed salary and employers NI due on the invoices that have been included in the accounts. If this is done correctly then the profit in the accounts will be 5% of turnover minus non-qualifying expenses.

[expat]

You need to calculate the salary at the end of the year and pay the tax. There is no actual requirement to actually make payment for the salary. The salary is calculated based on the invoices that have actually been paid during the year.

As far as the accounts go, you should accrue the deemed salary and employers NI due on the invoices that have been included in the accounts. If this is done correctly then the profit in the accounts will be 5% of turnover minus non-qualifying expenses.

Thanks.

[psychocandy]

FAO Mods: this guy is being rude to me, how rude am I allowed to be to him?

thats quite tame for NLUK. Should see what he says to me!