Am I obligated to have salary being the director and having 100% of the Ltd company?

[zeroonnet]

Hi,

I hope this question is on the right forum.

If I own 100% of a Ltd company, and I'm also the director with no employees, am I obligated to have a salary?

I'm asking this because in my home country I would have to have a salary.

Thanks

 

[ganah-allan]

I believe your company is independent from you. To make it easy just assign a salary 1 pound for you. It is a matter of decision. But, do ask around about this as I am not sure about British law.

 

[ethical PR]

You can take a salary, pay yourself dividends or not take anything out at all.

If your company made a profit, it would then pay tax.

 

[Novevan]

You can take a salary, pay yourself dividends or not take anything out at all.

If your company made a profit, it would then pay tax.

Correct, if you have good profit.
Then you can take a salary and pay tax.

 

[Ian J]

Correct, if you have good profit.
Then you can take a salary and pay tax.

You can take a salary even if the company is making a loss

 

[GraemeL]

If I own 100% of a Ltd company, and I'm also the director with no employees, am I obligated to have a salary?

I'm asking this because in my home country I would have to have a salary.

No you do have to take any salary from your business, nor do you have to take out any dividends.

G

 

[zeroonnet]

Maybe I explained it the wrong way. What I really want is not to receive any salary at all. Regardless if the company is making profit or not.

So the question is if an Ltd can run with only one director and without him receiving salary?

Also in UK can I have a salary less then the minimum wage? Like gannah-allan said?

I believe your company is independent from you. To make it easy just assign a salary 1 pound for you. It is a matter of decision. But, do ask around about this as I am not sure about British law.

My company provides a SaaS and I just need it for invoicing and won't have any employees ( for now ) and I don't need any salary also.

In my country, Portugal, this is not possible, the director of the company is obligated to have the minimum wage salary.

 

[johndon68]

You don't have to take a salary at all and, yes, you can pay yourself less than the minimum wage if you wish.

John

 

[zeroonnet]

Thanks that's what I was looking for.

 

[lww]

You don't have to take a salary at all and, yes, you can pay yourself less than the minimum wage if you wish.

...provided you don't have a contract of employment with your company (which you don't need to as a Director, but just pointing it out!).