Paying yourself

[Re8ecca]

Hi all,
I recently set up a Ltd company which has just started to turn a profit after covering costs (yey!) But I'm just realising I don't know how to pay myself as a director

 

[ctrlbrk]

Hi all,
I recently set up a Ltd company which has just started to turn a profit after covering costs (yey!) But I'm just realising I don't know how to pay myself as a director

Hi Re8ecca,

First of all well done on turning a profilt.

Presumably you haven't consulted an accountant yet?

They would be best placed to advise on the optimal way to take money out of your Ltd company, depending on your structure and personal situation.

 

[ZN_Accountants]

Hey

To pay yourself via your Ltd, it is best to consult an accountant who will advise you on the tax implications. If you do need help in finding an accountant, please don't hesitate to contact

 

[DontAsk]

Best to educate yourself and only then approach an accountant from a position of knowledge.

 

[ctrlbrk]

Best to educate yourself and only then approach an accountant from a position of knowledge.

If going that route, why not do your accounts by yourself too?

 

[JEREMY HAWKE]

If running a LTD company you really do need an accountant that knows what they are doing
Dont attempt it on your own

 

[ctrlbrk]

If going that route, why not do your accounts by yourself too?

@DontAsk I reviewed my earlier post and realised it comes across as condescending, which was not the intention.

I meant to say: if OP had been inclined to do their own research for how to pay themselves, the leap from there to doing their own accounts is not enormous.

One would think that once you hire an accountant they would provide you with all sorts of advice in that respect.

Is that not your experience?

 

[Daybooks]

You will need to register as an employer (via your company Gateway account) and operate PAYE and all the compliance that goes with it if you make qualifying payments to employees.

PAYE and payroll for employers: Introduction to PAYE - GOV.UK

Register as an employer - GOV.UK

 

[Newchodge]

There are only 2 ways to pay yourself from a limited company. Payroll and dividends, both of which involve rules that you have to understand.

You need to always remember that 'your' company's money is not yours. You and the company are separate legal entities. If you receive money from the company other than via payroll or dividends, your company will, legally, be lending you that money. That can cause all sorts of issues.

I endorse the idea that you should have a session with an accountant to understand this fully.

 

[DontAsk]

@DontAsk I reviewed my earlier post and realised it comes across as condescending, which was not the intention.

No problem. It was probably an appropriate response but I stand by my content.

How does one come to start a LTD company without even having a grasp of the basics like how to get money out of the company?

I meant to say: if OP had been inclined to do their own research for how to pay themselves, the leap from there to doing their own accounts is not enormous.

One would think that once you hire an accountant they would provide you with all sorts of advice in that respect.

Is that not your experience?

Yes, but I was at least able to understand what they were telling me, and what the alternatives involved. Researching and understanding means I am able to do my own bookkeeping, payroll and VAT, saving money by only paying an accountant at year end.

 

[Newchodge]

I don't know who has done this, but someone has marked every answer as the solution. Please don't do that! If you think someone has given a good answer, please use the 'Upvote' button.

 

[JEREMY HAWKE]

Bloody ell

and I thought I was a genius