Start Up Payroll

[mwt.taylor88]

Hi All,
I am looking at setting up a company next year. To begin with there will be 2 employees, myself and my business partner (both directors). I am trying to work out the most cost efficient way of paying ourselves as the first year is going to very tight. Does anyone have any tips I can look into e.g. combination of salaries + directors loans???
Also does anyone know if you can defer student loan payments for a year if you become self-employed.
Many thanks in advance
Matt

 

[weblisterltd.com]

No idea for student loans, if you setup a ltd company you will have to setup payroll, I don't think you can defer student loan once the member of staff receives payments, self employed for 2 people to be paid would seem bizarre.

 

[Scalloway]

You can put a salary through your payroll but you don't have to actually take the money out at the time the payroll is run - it can be left as directors' loans and withdrawn when funds permit.

It isn't a good idea for the company to loan money to directors. There can be tax consequences.

You only make student loan repayments if your income is high enough. The rules are here

https://www.moneyadviceservice.org.uk/en/articles/repaying-student-loans