I've only been benched once, bar 4 days waiting for paperwork to appear, and I just kept paying salary as I did during the contract prior.
as long as you have the money available you still need to live, pay the mortgage, bills etc.....
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Originally posted by TheCyclingProgrammer View PostIf you have reserves then it may well be worth paying yourself a salary equal to the personal allowance in order to benefit from a reduction in corporation tax.
If you're not actively pursuing contracts or working then I suppose HMRC could make an argument that the salary was not wholly and exclusively for business purposes, especially if it resulted in an operating loss, but I think it would be unlikely.
Of course there's absolutely nothing stopping you from taking dividends as long as you have retained profit in the company.
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Depending on your circumstances, if you're not paying a salary you may be able to claim JSA...
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If you have reserves then it may well be worth paying yourself a salary equal to the personal allowance in order to benefit from a reduction in corporation tax.
If you're not actively pursuing contracts or working then I suppose HMRC could make an argument that the salary was not wholly and exclusively for business purposes, especially if it resulted in an operating loss, but I think it would be unlikely.
Of course there's absolutely nothing stopping you from taking dividends as long as you have retained profit in the company.
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Originally posted by Laxmi View PostHi,
I'm currently out of contract, is it advisable to continue to take a salary?
Thanks
As stated above, get an accountant if you are unwilling to provide full details in your post, e.g. tax year to date gross salary, tax year to date dividends, retained profit, IR35 status, future plans, etc.
How do you expect anyone to help you if you don't bother to provide full details?Last edited by JB3000; 4 August 2014, 19:30.
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Originally posted by Laxmi View PostHi,
I'm currently out of contract, is it advisable to continue to take a salary?
Thanks
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