Can I continue to take a salary ?

[Bumble79]

Hi,

I run my own limited company with me and my husband as directors. My contract ended in April , and am not looking out for contract as I am having a baby in September. My question here is, Can i continue to take salary
and dividends as long as the monies are still left from my contract and not from my husbands ?

Appreciate any suggestions/advice.

Thank you!

[northernladuk]

You still work for your LTD whether you have a client or not and dividends can be paid at any time (if there is profit available in the LTD of course). Divis are not linked to anything so can be done any time you wish, once a year, everyday, up to you as long as it is from profit and you do a divi form signed by both etc etc....

Just make sure you don't spend your VAT and CT money.

Do you have an accountant?

[kaiser78]

Yes you can, but remember you can only draw out from retained profits held in your ltd company.

[NotAllThere]

... Can i continue to take salary
and dividends as long as the monies are still left from my contract and not from my husbands ?...

It doesn't matter (usually) who has earned the money, if you're both employees and shareholders. Both directors must agree though.

[Nixon Williams]

Hi,

I run my own limited company with me and my husband as directors. My contract ended in April , and am not looking out for contract as I am having a baby in September. My question here is, Can i continue to take salary
and dividends as long as the monies are still left from my contract and not from my husbands ?

Appreciate any suggestions/advice.

Thank you!

As has been said, you can continue to take a salary provided that as directors, you have decided that the company can meet this obligation.

Another thing to consider is your right to Maternity Pay - whilst I do not have all your details, you should consult with your accountant to ensure that you will qualify for these payments.

If you do qualify for maternity pay, your company may be able to apply for funding direct from HMRC to funs these payments.

Alan

[d000hg]

Taking divis is an easy answer - yes. What about salary though - is a company allowed to pay you a salary when you're not actually working? Some people try to hire their spouse and pay them a salary for token work but this is not allowed IIRC, in fact didn't an MP get slammed for hiring their son on £20k to basically do nothing?

[psychocandy]

But might be advantageous to not pay yourself a salary so that you can claim JSA if applicable.

Its a bit complicated with directors but my understanding was if you arent working or theres a downturn in business then you can claim this...

[northernladuk]

Taking divis is an easy answer - yes. What about salary though - is a company allowed to pay you a salary when you're not actually working? Some people try to hire their spouse and pay them a salary for token work but this is not allowed IIRC, in fact didn't an MP get slammed for hiring their son on £20k to basically do nothing?

But you are working.. for your LTD. Applying for gigs, networking, internal paperwork etc. A lot easier to explain this away than paying your out of work partner for doing your books. If you have no intention to get another gig or continue to run the company they yes you have a problem.

[Bumble79]

But you are working.. for your LTD. Applying for gigs, networking, internal paperwork etc. A lot easier to explain this away than paying your out of work partner for doing your books. If you have no intention to get another gig or continue to run the company they yes you have a problem.

Thanks all.. I do intend to work, but not now, after a year. So, until then, can i still take a salary obviously without touching the CT and VAT?

[northernladuk]

Thanks all.. I do intend to work, but not now, after a year. So, until then, can i still take a salary obviously without touching the CT and VAT?

Ohh eeerr, must have misread the post. I am not so sure about that. Need comment from one of our accountant friends I think... <slinks away>