MyCo paying different hrs

[vhadiant]

There are different opinion on this. Some accountants recommend you to pay yourself minimum wage while others don't bother with it. In the end, it's up to you how much you should pay yourself after weighing pros & cons about it.

As for myself, I pay myself minimum wage rather than a director fee.

[Platypus]

Well, if I were Hector I'd be on you like a ton of bricks.

But I believe there's NO evidence that this happens.

Where's Mal ?

[expat]

Might it not arouse Hector's suspicions if a PAYE scheme receives no payments year after year?

QB.

Well, if I were Hector I'd be on you like a ton of bricks.

[SupremeSpod]

Might it not arouse Hector's suspicions if a PAYE scheme receives no payments year after year?

QB.

Yup, but it's the directors decision.
Justify it as you wish but it's still your decision.

[QwertyBerty]

Might it not arouse Hector's suspicions if a PAYE scheme receives no payments year after year?

QB.

[SupremeSpod]

You're a director of your own company. You pay yourself what you like, when you like.

[Bomber]

So what your saying is that - The employee is the only party concerned about minimum wage and is the only party that would get upset about not being paid minimum wage....interesting.

What I was trying to get across is only get paid the income tax allowance and no more. Then the salary wouldn't qualify for any taxes.

Technique, I know but the post takes a while to show atm

[Integrity]

I'm pretty new to contracting and I'm thinking of the salary I get from MyCo. I see there's a few comments on getting paid £5,435 and then topping it up with divs. No problem doing that, but I could have a contract with MyCo which would pay me minimum wage for say 25 hours per week but end up working 37.5 hours a week for the client. If the employee (me) wants to work and not get paid the company can't be responsable?

£5435/£5.52 = £984.60
£984.60/48 (4 week hols, ish) = 20.5 Hours a week

so my contract with MyCo is to work 20.5 hours @ £5.52/h and then take divs now and again. What's the thoughts on this type of approach?

Cheers

I doubt anyone would attempt to force minimum wage laws against owners/directors of a business. Afterall, as the director you have control over the salary, and it would amount to legal action being taken against a director for not paying the director.

I think you will find that £5,435 is more about using up personal tax allowance, and nothing to do with minimum wage.

[Bomber]

On reflection this seems like a tax aviodance technic of the highest order and Hector will not look kindly on it. I suppose I could just salary of 37.5 hrs @ £5.52 and then the divs approach.

[Bomber]

I'm pretty new to contracting and I'm thinking of the salary I get from MyCo. I see there's a few comments on getting paid £5,435 and then topping it up with divs. No problem doing that, but I could have a contract with MyCo which would pay me minimum wage for say 25 hours per week but end up working 37.5 hours a week for the client. If the employee (me) wants to work and not get paid the company can't be responsable?

£5435/£5.52 = £984.60
£984.60/48 (4 week hols, ish) = 20.5 Hours a week

so my contract with MyCo is to work 20.5 hours @ £5.52/h and then take divs now and again. What's the thoughts on this type of approach?

Cheers