Getting paid by the company whilst employed

[AlexHarper]

I've recently set up a company with a colleague and we have out first 3 contracts getting signed this week. These contracts really came out of nowhere and have taken us by supprise and we still have to find an accountant etc.

My question is how do myself and partner take money out of the company as a wage once we've started making a profit? Do we set ourselves up for PAYE or do directors get paid a different way?

If we get paid via PAYE then how would this work for the Tax and NI as i'm currently working full time for another company whilst running my company?

Thanks in advance.

[Jenni384]

Hi Alex
The usual way is a mix of salary and dividends but, as you have another job elsewhere, it will be best to speak to an accountant to find the most tax efficient way of remunerating yourselves. It might be that a small salary is still a good idea, or it might be that you take all dividends. Only a look at your personal situation will determine which.

It's a good idea to get an accoutant from the off - have a look at the stickies at the top of the forum, one on finding an accountant and the other one, Ltd Co vs Sole Trade which explains a lot about the remunerations.

It's a good idea to have a chat to a few accountants to find one you like. You might want to look locally, or alternatively many people now work remotely and there are plenty of accountants on the forum who would be able to assist you if you wanted.

If you have any other questions please just ask.

Jenni

[AlexHarper]

Hi Alex
The usual way is a mix of salary and dividends but, as you have another job elsewhere, it will be best to speak to an accountant to find the most tax efficient way of remunerating yourselves. It might be that a small salary is still a good idea, or it might be that you take all dividends. Only a look at your personal situation will determine which.

It's a good idea to get an accoutant from the off - have a look at the stickies at the top of the forum, one on finding an accountant and the other one, Ltd Co vs Sole Trade which explains a lot about the remunerations.

It's a good idea to have a chat to a few accountants to find one you like. You might want to look locally, or alternatively many people now work remotely and there are plenty of accountants on the forum who would be able to assist you if you wanted.

If you have any other questions please just ask.

Jenni


Jenni,

Thanks for this, I have meetings with 4 different local accountants booked for this week and i'll have a read through the stickies!

John

[Jenni384]

Jenni,

Thanks for this, I have meetings with 4 different local accountants booked for this week and i'll have a read through the stickies!

John

Excellent! Good luck, I hope you meet one that you like and can work well with :)