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Paying myself

(4 Posts)
ModeratelyObvious Thu 19-Sep-13 19:25:21

I have set up a limited company and got my first two clients. Will shortly be doing my first invoice.

I was employed for some of this tax year and have already earned over the lower earning limit. I have some inherited money from elsewhere so don't actually need to draw money out of the company for a bit.

Do I have to pay myself something or can I leave it in the company to draw as dividends later when my inherited money has run out? Probably can manage until next tax year without drawings but don't want to mess up with HMRC.

Talkinpeace Thu 19-Sep-13 22:15:44

HMRC do not mind if you do not pay yourself
remember that the LEL is per job not per person
the Personal Allowance is the cumulative one ....
possibly take some divs, depending on profit levels

ModeratelyObvious Thu 19-Sep-13 23:38:55

Thanks Talkin.

Both contracts will finish before the end of the current tax year so I'm thinking there'd be no harm in leaving the money in so I had something to dividend out next year when I hadn't already used up my personal allowance.

I didn't realise that about LEL, I will read about that more carefully.

sanam2010 Wed 25-Sep-13 11:04:54

Yes you can just keep the money to pay yourself next year, I am doing the same with my company by the way! I am just a director but not an employee for now and will just become one next year

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