Reclaiming business start up costs

[BubbaWY]

What is the best way to get the initial funding for a new business back out of it? The investment has been recorded in the director loan account but is my partner best paying herself a minimum wage (so her NI is paid) and then take out additional money (when the business can afford it), thus reducing the director loan? Or taking the money back as a director loan repayment, avoiding the PAYE route?

(Havent got an accountant on board yet so I cant ask them. Its next on my list).

 

[DontAsk]

What is the best way to get the initial funding for a new business back out of it? The investment has been recorded in the director loan account but is my partner best paying herself a minimum wage (so her NI is paid)

Does she need to keep her state pension contributions complete?

She can always top up incomplete years at a later date.

Taking salary can be a good thing and will reduce profit and thus reduce corporation tax.

Talk to an accountant and get them to explain the optimum split between salary and dividends.

Any tax paid (up to a certain limit) can be recouped by making personal pension contributions.

What about the company paying into a pension for her?

Anything left can be taken out against the DLA.

Talk to an accountant...

 

[Newchodge]

One option is to maximise her PAYE payment (£12570 per year if no other PAYE income), but credit it to the DLA until the business has better cashflow. She can withdraw from the DLA whewnever the business has the cash.

 

[MyAccountantOnline]

What is the best way to get the initial funding for a new business back out of it? The investment has been recorded in the director loan account but is my partner best paying herself a minimum wage (so her NI is paid) and then take out additional money (when the business can afford it), thus reducing the director loan? Or taking the money back as a director loan repayment, avoiding the PAYE route?

(Havent got an accountant on board yet so I cant ask them. Its next on my list).

It really does depend on many factors including the level of profits the company is making and your partners personal circumstances. Definitely best taking specific advice from your accountant once you've appointed someone.

 

[Lisa Thomas]

What is the best way to get the initial funding for a new business back out of it? The investment has been recorded in the director loan account but is my partner best paying herself a minimum wage (so her NI is paid) and then take out additional money (when the business can afford it), thus reducing the director loan? Or taking the money back as a director loan repayment, avoiding the PAYE route?

(Havent got an accountant on board yet so I cant ask them. Its next on my list).

Maybe consider using @MyAccountantOnline

 

[NortonBishop]

Does she need to keep her state pension contributions complete?

She can always top up incomplete years at a later date

Wouldn't it cost her more money to top up later than it would do if she has the company pay her the minimum to qualify yearly re state pension without her actually making any NI contributions?