(More) Limited Company Qs

alias123

Hi,

This may be an obvious question, but I want to clarify for HMRC purposes.

So far this tax year I have been an employee of a company and paid tax via PAYE/NI.

If I start a limited company from August does my ltd company salary, dividend thresholds have to take into account what I have already earned/paid in tax this financial year?

I mean until end of March 2014 do I need to pay myself a salary/dividend that equals 32K basic - salary earned with my current employer.

And then from Apr 2014 pay myself 7k salary and 25K dividends

Thanks

Wywth

alias123 wrote: »

Hi,

This may be an obvious question, but I want to clarify for HMRC purposes.

So far this tax year I have been an employee of a company and paid tax via PAYE/NI.

If I start a limited company from August does my ltd company salary, dividend thresholds have to take into account what I have already earned/paid in tax this financial year?

I mean until end of March 2014 do I need to pay myself a salary/dividend that equals 32K basic - salary earned with my current employer.

And then from Apr 2014 pay myself 7k salary and 25K dividends

Thanks

PAYE takes account of your ongoing annual earnings even if you change employer.

You can pay yourself whatever you want when you're the boss (needs shareholder approval for final divi, but you're presumably the majority shareholder too)
If you were to get a job flipping burgers for MaccyD, you couldn't demand to earn £32k a year there in year 1. Same goes if your company employs you.