Reply to: Salary Advance

[fidot]

I see you omitted to answer the more critical part of the 2 part question.

I haven't answered that part ad I have no knowledge nor opinion about it.

[Paralytic]

The amount was specified in the OP

I see you omitted to answer the more critical part of the 2 part question.

[fidot]

And, how much?

The amount was specified in the OP

[Paralytic]

Thanks for checking. I think I am safe. I have gone with umbrella so will have my PAYE salary from umbrella; no salary from limited company. Wife will continue to take limited company salary. No we are not spending tax money. thanks!

What is the company paying your wife to do whilst it is effectively dormant? And, how much?

[Geekman]

That's a bit tough as that's the way to do this. You have a loan, the wife needs an advance. You sure you aren't digging yourself a hole here? What happens if your gig evpaorates tomorrow?

You got enough money in the account to make sure your dividends are coming out of profit and are not illegal? You aren't spending your tax money hoping you can pay it back later?

Thanks for checking. I think I am safe. I have gone with umbrella so will have my PAYE salary from umbrella; no salary from limited company. Wife will continue to take limited company salary. No we are not spending tax money. thanks!

[northernladuk]

True. In the process of changing them as soon as company year ends.

I'd agree with the last couple of posts. If you need to leave you leave. Accountants should bend over backwards for your new business at the moment. It's a doddle if you are in FA and they will go above and beyond to onboard you in the current climate. You hold the power now.

[northernladuk]

I already have taken it early this year so don't want to use that option

That's a bit tough as that's the way to do this. You have a loan, the wife needs an advance. You sure you aren't digging yourself a hole here? What happens if your gig evpaorates tomorrow?

You got enough money in the account to make sure your dividends are coming out of profit and are not illegal? You aren't spending your tax money hoping you can pay it back later?

[Craig@Clarity]

that a sales pitch?

Could be seen that way! Just an innocent helpful comment in reality though.

[Lance]

Some firms don't charge for catch up fees if you swap mid year so it shouldn't cost any extra.

that a sales pitch?

[Craig@Clarity]

no point. They'll take months to do the year end. You just need to accept it's gonna cost you to move.

Some firms don't charge for catch up fees if you swap mid year so it shouldn't cost any extra.

[Lance]

True. In the process of changing them as soon as company year ends.

no point. They'll take months to do the year end. You just need to accept it's gonna cost you to move.

[Geekman]

If you don't trust your accountants to the point you have to come ask a random set of contractors I'd suggest swapping accountants.

True. In the process of changing them as soon as company year ends.

[Craig@Clarity]

As others have said, it's a straightforward loan from the company. Each month where she doesn't get a salary in actual cash, the wage on paper is credited against the loan advanced. No issues to doing this if you need to go ahead with it. Let the accountant deal with the accounting!

[Geekman]

you could take a directors loan and give it to her

I already have taken it early this year so don't want to use that option

[BlasterBates]

This is pretty standard double entry book keeping. Just let the accountant handle it. It is simply a loan without interest, and the loan just enables them to balance the books. The loan is paid off over several months.