From Ltd to PAYE - tax

[PhilAtBFCA]

Ltd Company whilst being perm

Ok great, so keeping it going will still mean there are some things to do, the company will not be "dormant" or "not trading" it just wont have any sales.

To minimise any paperwork you could consider deregistering form vat and paye and keep things pretty simple that way.

Hope taht helps, and best of luck

Phil

[thelurker]

The role isn’t permie per se but a fixed term but no way of getting paid through LTD as it is with the public sector direct.

This is where all the questions stem from, after the contract finishes I may come back to contracting so don’t want to close the business account as still have some cash in that also.

[PhilAtBFCA]

Ltd to Perm

thelurker

Congratulations on the perm job, I hope your negotiations work out ok.

Just a little point - It wasnt clear to me if you knew, but your responsibility for your Ltd Co does not end when you get your P45 from your company. Ther may be plenty to do, and you may need to take some decisions on how to play that best, not just from a tax point of view, but also hassle factor with having a perm role and a ltd co.

Phil

[Fred Bloggs]

The salary is a sliding scale about 10k difference between the lowest and highest

If I ever get told the rate for the job is between "X" and "Y", I always reply that "well, "Y" is a bit less than I usually accept, but if that really is the top line then I'll reluctantly accept it." Why should you, or anyone else, ever agree to less than the maximum they're prepared to pay? They won't thank you for accepting "X" when "Y" is on offer.

[thelurker]

The salary is a sliding scale about 10k difference between the lowest and highest

[Hex]

Cheers for the reply people..............

I have now been been asked to provide a pay slip so they can pay me accoding their pay chart, which is a sliding scale. However, as mentioned my pay slips have stated I earn £400 a month so what I can say/do to ensure I am payed competitively?

Thanks

Find out what the going rate is and ask for that?
Tell them what you want to receive and negotiate?
Explain to them they you've been earning xxx a day contracting and that you don't get playslips for that as it is invoiced through a ltd company - send them a copy of your latest invoice.

Whatever you do will probably confuse them!

[thelurker]

Cheers for the reply people..............

I have now been been asked to provide a pay slip so they can pay me accoding their pay chart, which is a sliding scale. However, as mentioned my pay slips have stated I earn £400 a month so what I can say/do to ensure I am payed competitively?

Thanks

[thunderlizard]

Classic mistake - confusing YourCo money with your money.

YourCo stops paying you a salary

It doesn't have to (though it's one of the more sensible options). If you want to keep it ticking over for reasons of infrastructure, £400/month is probably a fair salary for that sort of thing.

You probably shouldn't stop paying the accountant, because whether you keep the company running or wind it up he's going to have to do some work one way or another.

[thelurker]

Should I stop paying my accountant?

[malvolio]

I have been contracting for over a year but now I have been offered a contract on a fixed term but through PAYE.

How will this affect my tax, as I have been paying myself 400 a month for the past year, plus dividends (and expenses)? Will I be screwed as this new contract will last only till March next year?

Thanks

Classic mistake - confusing YourCo money with your money.

YourCo stops paying you a salary, and tidies up the outstanding NICs and PAYE. Give a P45 to your new client/employee, they will use that to ensure you pay the correct tax during that contract as a normal employee would. When (if) you go back to a normal contract, reverse the process.

Expenses will stop, since you fail the "temporary place of work" test. However there's nothing to stop you taking dividends out of YourCo at any point as long as there is enough net profit to cover them.

[thelurker]

I have been contracting for over a year but now I have been offered a contract on a fixed term but through PAYE.

How will this affect my tax, as I have been paying myself 400 a month for the past year, plus dividends (and expenses)? Will I be screwed as this new contract will last only till March next year?

Thanks