paying self a salary from Ltd company

[bell]

My company which i run part-time turns over a very small amount and will be turning over less than 4K so under the amount for corporation tax. Can I just pay myself the entire turnover less costs - say 3.5K as a salary...obviously i will put this on my tax return as a self employed person. I started the company late last year, did one job (creative field) for which i did not pay myself a salary and now want to stop being self employed and have been offered a job. The company has the money it has earned so far in it's bank account...if i take the job I might close the company down or make it dormant and so i will need to close the bank account...I'm wondering what to do with the funds in it. I have all the shares in the co and am the only director and I have not used my personal tax allowance for this year.

 

[Joyous]

Can I just pay myself the entire turnover less costs - say 3.5K as a salary...

You can do, but this is probably not the most efficient exit route as your company will have to pay employers NI and you’ll have to pay tax and NI on the salary. It’s worth speaking to your accountant about this as there are a couple of options that spring to mind that should work out cheaper tax-wise.

Regards

Joy