Contracted for 1 month only!

[LondonManc]

You need an accountant...but my thoughts are that CT will apply so 19% will be due to HMRC. You could divi out the rest and pay tax on the balance after the tax free allowance. That empties the company bank account and avoids payroll issues.

Saves permie/umbrella payroll issues going forward too. Good shout.

[hugebrain]

Thanks for reading.


Can any of you fine folks lend a hand and point me in the right direction with it?

Cheers

Windy

At the moment there is no tax to pay because it is such a piffling amount of money. Depending on what you do for the rest of the year you should pay it out as salary, dividends, pop it into a SIPP or spend it on business things (or a combination of all these things).

[malvolio]

You need an accountant...but my thoughts are that CT will apply so 19% will be due to HMRC. You could divi out the rest and pay tax on the balance after the tax free allowance. That empties the company bank account and avoids payroll issues.

[windybusiness]

I'm wondering if there is a chance he's going back sometime in forseeable future so might be worth just hanging on and getting an accountant when he starts again. As usual with these questions with next to no context it's just a guessing game what is really best for them overall.

It's OK just paying himself but there is all the other end of year stuff they may have to consider as well.

Appreciate that you dont have much to go on. Its rather difficult to know what is useful info, and what might just be irrelevant detail.

I am enormously grateful to all of you for replying, though.

I dont anticipate going back to contracting in the near future. I dont know if I can leave the Ltd company dormant so as to avoid setting up again if needed later down the line. I like contracting for many reasons but my circumstances right now dont suit it.

Thanks again -

Windy

[windybusiness]

How do you normally operate your limited? Why is this any different just because your annual earnings are tiny?

The simple answer is that I have no concept of whats "normally" done, or why different, as I have a single month only, you see

[windybusiness]

OP - was there no other personal income that FY, i.e. perm job, FTC, anything from somewhere other than your Ltd?
How soon do you *need* the money as opposed to want it - there could be tax efficiencies once the whole picture has been established.

I had a perm job that entire year, was made redundant in March, picked up a contract role without a break in employment. No other income.
I'll need to use the cash when I buy a house in a couple of months.

[windybusiness]

So you are never contracting again?

I dont know, but not for the forseeable future. It was a single months work only. I thought it would continue and thats why I set up the Ltd co. It didn't !

[malvolio]

How do you normally operate your limited? Why is this any different just because your annual earnings are tiny?

[NotAllThere]

Whatever you do, set aside enough for co. house fees and corporation tax.

[northernladuk]

What are you thinking - no payroll run so just do one to split it across the months?

OP - was there no other personal income that FY, i.e. perm job, FTC, anything from somewhere other than your Ltd?
How soon do you *need* the money as opposed to want it - there could be tax efficiencies once the whole picture has been established.

I'm wondering if there is a chance he's going back sometime in forseeable future so might be worth just hanging on and getting an accountant when he starts again. As usual with these questions with next to no context it's just a guessing game what is really best for them overall.

It's OK just paying himself but there is all the other end of year stuff they may have to consider as well.

[LondonManc]

So you are never contracting again?

What are you thinking - no payroll run so just do one to split it across the months?

OP - was there no other personal income that FY, i.e. perm job, FTC, anything from somewhere other than your Ltd?
How soon do you *need* the money as opposed to want it - there could be tax efficiencies once the whole picture has been established.

[northernladuk]

So you are never contracting again?

[windybusiness]

Thanks for reading.

I took a contract outside IR35 for 1 month at the end of FY 2020/1. (March 1 - 31).
The payment of £8625 came through to my limited company last month, lovely.

Am now not in that role anymore and wondering what should I do in terms of paying myself in a tax efficient way?
All I have in that FY is the single payment in. Outgoings: I bought a monitor (£100 or so) which I can claim as a legit business expense but thats all.

It seems a bit crazy to employ an accountant to work this out as its literally a single month.

Can any of you fine folks lend a hand and point me in the right direction with it?

Cheers

Windy