Making Payments

tmuss

Hi all
So I am the only director with 100% shares and owner of a small LTD company newly formed dealing purely online creating and selling digital sound file libraries. I am a UK citizen but not resident. I have a business bank account to separate everything. Sales are very small and infrequent . I would like to know when am I allowed to take any kind of payment and how much, do I have to wait for the end of the financial year or can be any time as long as tax payments are kept in mind. Could i be paid for creative services for that saleable product Also if I wanted someone who's not connected to the business was to do some creative design which was a saleable product and they were paid when the item sold , could I enter that as a payment for creative services. The business would take 10% of the saleable product.

Aquamania

tmuss wrote: »

Hi all
So I am the only director with 100% shares and owner of a small LTD company newly formed dealing purely online creating and selling digital sound file libraries. I am a UK citizen but not resident. I have a business bank account to separate everything. Sales are very small and infrequent . I would like to know when am I allowed to take any kind of payment and how much, do I have to wait for the end of the financial year or can be any time as long as tax payments are kept in mind. Could i be paid for creative services for that saleable product Also if I wanted someone who's not connected to the business was to do some creative design which was a saleable product and they were paid when the item sold , could I enter that as a payment for creative services. The business would take 10% of the saleable product.

When you say "when am I allowed to take any kind of payment and how much", do you mean receive a salary or dividend?

If so, any time you like.
Most people are paid monthly nowadays, but some are paid weekly, fortnightly or even 4 weekly (as opposed to per calendar month). But you could be paid daily, if you (i.e.your company) want to report that every day to HMRC, or any other period you feel appropriate.

Similarly, you can take an interim dividend any time. There are some restrictions on when you take a final dividend, but you can take interim dividends and declare no final dividend.

You can take as much as you like (subject to the company being able to afford it, and any contract you as an employee have with your company with regards to your salary)

In regards your other question relating to your compnay entering into an arrangement/contract with a third party to sell an item on commission, then if the item eventually sells and your company receives the commission, it must certainly go through the books.

00ec25

you state you are not UK resident?
So what are your resident country's tax rules re "foreign" earnings, as that could influence what format you take your "earnings" as

is this a UK company registered at Companies house? Why do you think it remains a UK company if you are 100% shareholder but are not UK resident. Has the company passed a Statutory Residency test from HMRC? Do you know how to ensure "management and control" remains resident in the UK, when you personally are not?

- salary
- dividend (provided at the precise point in time it's paid, the company has sufficient profit to cover a dividend of that size)

- gross sales value less commission earned = net sub-contractor payment
terms of trade with sub contractor re cashflow

how come you have set up a company without discussing these sort of questions with your company accountant? How you take money out is rather key to having a company, especially if non resident yourself!