Tax free Salary

[Poppet2]

Hi
I am trying to start up a business but could do with a break of paying myself the minimum possible for a year while I get the business growing before I start paying tax. Does anyone know the threshold I can pay myself before paying tax?

 

[Newchodge]

If you have no other income, get your tax code and add 0 to the end of it. Normally it would be about £8100

 

[Yorkshire&Online]

You will only pay yourself a salary if you are trading as a company.

If you are just a self employed sole trader then all your business profits are your income and will be taxable through the income tax regime.

You will find lots of useful start-up advice on our my website and let me know if you want any other start-up help:

http://www.brown-royd.co.uk/services/business-start-ups

 

[Christine Hough]

If you are trading through a ltd company, pay yourself enough to get NI credit. I think 144/week about does it without paying income tax or NI (yet being credited) if you have not other job / income, but check your own circumstances with an accountant.

 

[Andy@TopBranchPartners]

Have you put money into the business? If so, you don't have to pay tax on any rebate (if Limited Company) or until profit is made (Sole Trader.) I'd have to know more to give you proper advice as to the best way forward? Feel free to get in touch for a free consultation?

 

[killerdog]

Someone told me that if I sell a service then all income is tax free. Basically, Ive paid tax on all the things I need to run the service (electricity, phone line, broadband) and the customers already paid VAT, is that right?

 

[Anna Chandley]

Someone told me that if I sell a service then all income is tax free. Basically, Ive paid tax on all the things I need to run the service (electricity, phone line, broadband) and the customers already paid VAT, is that right?

No. You will still pay tax on your profits.

Anna

 

[Walkol]

Someone told me that if I sell a service then all income is tax free. Basically, Ive paid tax on all the things I need to run the service (electricity, phone line, broadband) and the customers already paid VAT, is that right?

No. No. And then No again. Whoever told you that should never give advise of any sort.