Just had my plugged pulled. LinkedIn is dead, no new projects hiring all flatlined. No idea when or if I'll ever get another gig. Question is, should I take out 10k or leave it in there to pay me a salary? Tempted to drop it into my Marcus.
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Depends how much you have in your company.
In my case, as I want to spread the risk between my banks, I will be paying the maximum dividend I can, in one go, after considering my salary for this year.The Chunt of Chunts. -
There's VAT deferral program, also Corp Tax due date will take a months, therefore if you're sure about some future revenues (contract+ payment reliability {there are some risks because of new-world economic environment}) then it's not a big deal to empty accounts against future revenues/cash flow.
Worst case scenario - you can always top up your capital/equity via new share issue or much easier way - loan from director to cover these liabilities in a future.
Not the most efficient way (because money you top-up from are after-tax) - but whatever does the job to keep your ltd clean for HMRC/creditors.
P.S. you can also pay HMRC in advance (interest is ridiculous) to keep bank account empty in case if you're worrying about it..
I'm normally going first with 15K salary in a beginning of tax year, then some dividends.. depending on financial situation and future projections..
P.P.S. yeah, market will go into flatline state for some prolonged period of time, kind of expected, so best strategy might be taking spring/summer break and enjoying it at full scale..
if preference is into getting cash flowing - then giving up on rates is inevitable in most areas..Last edited by Yuri F; 5 April 2020, 18:42.Comment
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