Backpay salary - to before company was founded

[CppAnddotNET]

Hi, I have just founded a company.

How far can I backpay salary?

The purpose is partly to pay myself some salary in 2018. And also to keep the weekly amounts low (To be under the PAYE limit for example)

Can I just send myself money and declare it as "Salary December" in the transfer?

[Old Greg]

Hi, I have just founded a company.

How far can I backpay salary?

The purpose is partly to pay myself some salary in 2018. And also to keep the weekly amounts low (To be under the PAYE limit for example)

Can I just send myself money and declare it as "Salary December" in the transfer?

Tax year ends in March. You need to divide the salary you want to pay between when you start trading or possibly when you open company and the end of the tax year.

Just my non expert opinion. Ask NLUK if you should ask your accountant. He should be able to advise on this.

[TestMangler]

15

[WTFH]

Hi, I have just founded a company.

How far can I backpay salary?

The purpose is partly to pay myself some salary in 2018. And also to keep the weekly amounts low (To be under the PAYE limit for example)

Can I just send myself money and declare it as "Salary December" in the transfer?

How did you trade before you set up the company?

What does your accountant say?

If the company didn't exist at a point in time, I don't believe you can be paid by it for that time, but I'm not your accountant.

[WTFH]

And can I just check - how have you been carrying out your business since 2011?

In 2012 you were talking about setting up a company
In 2013 you were on about umbrellas
In 2015 you were back to talking about setting up your company but you were massively in debt
In 2018 you were talking about working remotely

So, fo the last 7 years, how have you conducted your business?

[CppAnddotNET]

I've been moving around

I have been moving around, simple as that.

The company has funds for work done before the company was founded. From the viewpoint of other regimes it would be best to have a little bit of salary in the UK in 2018.

[zonkkk]

The company has funds for work done before the company was founded.

SMH

[WTFH]

How did you trade before you set up the company?

What does your accountant say?

If the company didn't exist at a point in time, I don't believe you can be paid by it for that time, but I'm not your accountant.

I have been moving around, simple as that.

The company has funds for work done before the company was founded. From the viewpoint of other regimes it would be best to have a little bit of salary in the UK in 2018.

OK, let's try again:
1. How did you trade before you set up the company?
2. What does your accountant say?
3. How far back does the work go that your company has received payments for?
4. How did you invoice your clients from a non-existent company?
5. Have any of these funds gone through other companies or personal bank accounts?

[northernladuk]

Just my non expert opinion. Ask NLUK if you should ask your accountant. He should be able to advise on this.

I'm a bit busy so will have to get one of my minions on the case for this one.

What does your accountant say?.

Sorted

[Maslins]

The company has funds for work done before the company was founded.

This is no different to saying "I have funds for work I did before I was born.".

If the company didn't exist at the time, it did not do that work, it did not invoice for that work, and it did not get paid for that work. Any suggestion otherwise is simply wrong.

I'd suggest any work done prior to incorporation has to be sole trader income, and taxed accordingly. By all means you may have then put that money into a company bank account, but that doesn't make it company income. It makes it a director loan and/or share capital.