paid myself a lower salary than I could Have

[mlc2009]

Hi All

Sole director of LTD company

I have been paying myself a salary of £703 for some reason this year, and could have paid myself £736

Is it possible for me to work out difference and give myself a one off payment for this year?

I asked my accountant this question on Friday, but thought I'd ask here incase they don't reply by Tuesday

Thanks All

 

[Newchodge]

Yes.

 

[mlc2009]

Yes.

Thank you for the quick response, good to know!

I just realised I did the same last year as well, just a shame I can't backdate that. Oh well

 

[Talay]

19% x (736-703) x 12 = £75.24.

Hope your accountant doesn't charge more than this

 

[Adam93]

As Talay says, there isn’t much tax at stake so I wouldn’t lose sleep over it. The lower salary is still sufficient to ensure the year is a qualifying one for your state pension, which is more important than a £75 tax saving in my opinion.

 

[mlc2009]

The extra 300 plus in my pocket couldn't hurt either

 

[Talay]

The extra 300 plus in my pocket couldn't hurt either

There isn't an extra £300 in your pocket from the magic money tree though is there ?

The only difference is the theoretical tax at 19% on the £33 a month which is £75 a year.