Drawing salary when not trading

[smileyface]

Can somone please give me advice re drawing salary (and expenses) when not trading?

I have been drawing a monthly salary since April 2016 but my contract is finishing next month.

My accountant says since I won't be trading in September, I am not allowed to draw a salary. Is that true?

What about expenses? Even though I'm not trading, ie don't have a contract, I'm still the director of my company and am running it, so should I be allowed to draw a salary, as well as expenses from September onwards?

Thanks

[northernladuk]

Will your expenses be wholly and exclusively for the purpose of business?

[eek]

Can somone please give me advice re drawing salary (and expenses) when not trading?

I have been drawing a monthly salary since April 2016 but my contract is finishing next month.

My accountant says since I won't be trading in September, I am not allowed to draw a salary. Is that true?

What about expenses? Even though I'm not trading, ie don't have a contract, I'm still the director of my company and am running it, so should I be allowed to draw a salary, as well as expenses from September onwards?

Thanks

Go back to your accountant and ask him why you can't draw salary....

Then if you don't like the answer find a far better accountant - I don't think it would be that difficult....

[northernladuk]

http://forums.contractoruk.com/showthread.php?t=109174

Same question here although it's a balls up of a thread.

[northernladuk]

Another
http://forums.contractoruk.com/showthread.php?t=44092

http://forums.contractoruk.com/showthread.php?t=114460

http://forums.contractoruk.com/showthread.php?t=79424

And so on....

[TykeMerc]

I carry on drawing salary if I don't have an active fee earning contract on the go, I'm certain I'm not the only one that does.
Your accountant has some funny ideas, you might want to do as Eek suggested and look into getting an accountant with a clue.

As to expenses if I go to a long distance sales meeting or business event then I use the standard expenses method for mileage and out of pocket costs associated with the trip.

[kaiser78]

If you have funds in your company account after provisioning for corporation tax then you can draw out salary/dividends/expenses even when not in contract. That is why most of us save a warchest to cover such periods.

My accountant has even suggested that I could draw out salary from funds that have been provisioned for corporation tax if I needed to, as long as I have funds to pay corporation tax when it is due.

[stek]

Can somone please give me advice re drawing salary (and expenses) when not trading?

I have been drawing a monthly salary since April 2016 but my contract is finishing next month.

My accountant says since I won't be trading in September, I am not allowed to draw a salary. Is that true?

What about expenses? Even though I'm not trading, ie don't have a contract, I'm still the director of my company and am running it, so should I be allowed to draw a salary, as well as expenses from September onwards?

Thanks

Go back to your accountant and tell him he's sacked, due to him being a moron.

[kaiser78]

Go back to your accountant and tell him he's sacked, due to him being a moron.

You've been watching The Goldbergs !

[jamesbrown]

If you're actively looking for business, then you're trading. If you're not trading, then you cannot obtain tax relief on anything that is conditional upon being wholly and exclusively for the purposes of the trade, because there is no trade. For example, if you weren't trading, and a salary payment resulted in a loss, that loss couldn't be carried back to obtain CT relief, because there wouldn't have been a trade. However, I don't think that's what you're talking about. In your circumstances, you'll need to get your accountant to explain themselves. Being out of contract is not the same as ceasing to trade, but it depends on your intention.