Not traded for last financial year, but paid my self a salary

[phayes]

Hi,

The last financial I did not contract, but I took the time out to work on some business idea's, I made no money and during this time I paid myself a salary, the return was submitted using the PAYE Tools Real Time.

My question is other then use an accountant to do my accounts which will be very basic as there was no revenue, what set of accounts do should produce?

Is it true to say that in future if I do not intend to contract for a year then I should make the company dormant and take out the remaining cash?

Thanks for your replies,

Paul.

[tractor]

...

Hi,

The last financial I did not contract, but I took the time out to work on some business idea's, I made no money and during this time I paid myself a salary, the return was submitted using the PAYE Tools Real Time.

My question is other then use an accountant to do my accounts which will be very basic as there was no revenue, what set of accounts do should produce?

Is it true to say that in future if I do not intend to contract for a year then I should make the company dormant and take out the remaining cash?

Thanks for your replies,

Paul.

I know the boat has sailed on this one but why did you pay salary and not dividends? - it would have been from retained earnings and there would have been no further CT to pay.

WRT your question, only you know what your current situation is regarding current employment, future contract prospects and such are. You should be able to sit with your accountant and decide on the most appropriate and cost effective course of action.

[ASB]

Talk to your accountant. It looks like you will have a trading loss equal to salary plus ers ni. You may be able to carry this back to prior years which will mean those accounts need restating and then you get ct back.

I have no idea of the level of salary, but generally salary up to personal allowance (if not used elsewhere) and then dividends will generally yield the lowest payment to hmrc.

the salary will also be charegable to p and l reducing ct. In the loss making scenario the can reduce already paid ct, or future ct. Obviously the loss will reduce distrbutable profits for dividends.