Reply to: Salary Change

[zonkkk]

I have always paid myself salary of £732. Now since I have a job I want to save tax and pay myself as low as possible. Do you mean I can stop paying myself even though I am employed by m y limited company?

Yes, stop paying yourself a salary from you company, but still file your HMRC payroll as you did every month until now (I hope) but with a value of 0.

[fidot]

A P45 isn't necessary.
When I was in a similar situation, I had to wait until I had received my first pay from my employer. Then I called HMRC and asked to split my tax code across 2 employments. I set the one for myco to 0T which has the required effect.

[Lance]

It wouldn't be a P45, would it? You'd need a new starter form, as you're effectively taking a second job.

But what OP wants/needs a P45 to be tax efficient. If his LTD stops paying a salary it can issue a P45.
Otherwise it's emergency tax till forever and only getting it back at SA time.

Of course an accountant would/should have already done this. Buy hey ho.

[Eirikur]

It wouldn't be a P45, would it? You'd need a new starter form, as you're effectively taking a second job.

If he doesn't fire himself from his ltd payroll you're right, but if he does he'll need a P45

[vwdan]

Stop paying yourself a salary and send yourself a P45, you know you need to give one to your new employer don't you, else you will be taxed on an emergency rate

It wouldn't be a P45, would it? You'd need a new starter form, as you're effectively taking a second job.

[Eirikur]

Stop paying yourself a salary and send yourself a P45, you know you need to give one to your new employer don't you, else you will be taxed on an emergency rate

[nomadd]

No.. I don't have a accountant. I manage everything myself

HMRC are going to love you.

And probably sooner than you think.

[eek]

That's not true. It's fine for a director to draw a salary without a contract of employment. Don't muddy the waters.

Equally it's fine for a director to not draw a salary regardless of whether he has or doesn't have a contract of employment.

[ladymuck]

You don't need to pay a salary, but if you do it will require a contract of employment (payments from a company without an employment contract are either drawings or dividends).

If you do pay a salary you need to make sure you pay yourself minimum wage for the hous you work for your company (in a salaried manner)

It is simple, but it is also really easy to get confused so you might be best served with an accountant helping here

That's not true. It's fine for a director to draw a salary without a contract of employment. Don't muddy the waters.

[oilboil]

^^ OG is correct though perhaps poorly expressed: there is no need to pay yourself a salary.

You don't need to pay a salary, but if you do it will require a contract of employment (payments from a company without an employment contract are either drawings or dividends).

If you do pay a salary you need to make sure you pay yourself minimum wage for the hous you work for your company (in a salaried manner)

It is simple, but it is also really easy to get confused so you might be best served with an accountant helping here

[wattaj]

No need to pay a salary.

^^ OG is correct though perhaps poorly expressed: there is no need to pay yourself a salary.

[Antman]

Plus fairly sure he could have been paying himself more without paying tax but my accountant deals with all that.

[eek]

Not very well it appears. What else have you done wrong that you don't know about and has cost you more than an accountant?

Not knowing you don't have to pay yourself is a very basic gaff.....

I was purposefully not directly given him that (correct) answer so that he was forced to get an accountant

[northernladuk]

No.. I don't have a accountant. I manage everything myself

Not very well it appears. What else have you done wrong that you don't know about and has cost you more than an accountant?

Not knowing you don't have to pay yourself is a very basic gaff.....

[Old Greg]

I have always paid myself salary of £732. Now since I have a job I want to save tax and pay myself as low as possible. Do you mean I can stop paying myself even though I am employed by m y limited company?

If you are Director and sole shareholder or split 50/50 with spouse, you're not an employee. No need to pay salary. You really do need an accountant though.