My company year ends at the end of Sept. From Sept 12 to Jan 13 I was between contracts and told my accountancy co I wouldn't be taking a salary or dividends.
From Jan 13 I have been in a contract. I have being paying myself a salary and dividends. Due to the reporting requirements from Vector I was advised by my accountancy co to pay a salary once a year in March / April.
My accounts from Sept 12 to Sept 13 are now being done, and my accountant tells me that I will have no salary to show for the year.
This means my corporation tax bill is massive.
Q. Should my accountants have pointed out the negatives of not taking a salary? I was unaware that by taking one annual salary I'd be left exposed.
Q. Will Hector think it odd that I am not taking a salary?
Any advice greatly received. Though please don't say "you are the director, you should have know about the salary reporting" - that is why I pay over a grand a year to an accountancy firm for!
From Jan 13 I have been in a contract. I have being paying myself a salary and dividends. Due to the reporting requirements from Vector I was advised by my accountancy co to pay a salary once a year in March / April.
My accounts from Sept 12 to Sept 13 are now being done, and my accountant tells me that I will have no salary to show for the year.
This means my corporation tax bill is massive.
Q. Should my accountants have pointed out the negatives of not taking a salary? I was unaware that by taking one annual salary I'd be left exposed.
Q. Will Hector think it odd that I am not taking a salary?
Any advice greatly received. Though please don't say "you are the director, you should have know about the salary reporting" - that is why I pay over a grand a year to an accountancy firm for!
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