Best way as a director to pay yourself...

emsywoo123

Personally, from past experience, I would say every pound I have paid my accountant must have saved me £10-20.:eek:

I cannot urge people strongly enough to get one. How anyone thinks they can run a business and be fully aware of all the full financial implications as well as an accountant I have no idea.

This site is a tremendous source of info, but an accountant IMHO is a must

stevem76

Thanks and agreed, emsywoo, I have an appointment booked tomorrow to answer this and more. But this site is a great help in going in prepared to get the most out of it.

Plan to have the comapny incorporated in the next few days so getting quite excited!

eventer

stevem76 wrote: »

Thanks Mahmood, no plan to have employees - the way I read the HMRC's guidance, I thought I had no choice but to have PAYE for Directors. If I don't have to and I can just take a dividend, that would be great.

As long as the minimum PAYE is being paid on your behalf from some source, you don't need PAYE on your business.

I have a part time contract which is PAYE which pays me approx 16K a year, then my own business which has just filed its first year tax returns and made a profit of circa 17K after tax - I am the sole employee and director of that business and I pay myself only in dividends. All my relevant contributions are more than covered by the PAYE from the other contract. When that comes to an end, I will set up a payroll which pays me the absolute minimum possible and the rest of my income will come from dividends - my accountant feels this is the most sensible way to do things!