PAYE

[Laxmi]

Hi,

I'm currently out of contract, is it advisable to continue to take a salary?

Thanks

[SpontaneousOrder]

Hi,

I'm currently out of contract, is it advisable to continue to take a salary?

Thanks

Depends how hungry you are.

[northernladuk]

No. Use it to pay a decent accountant instead.

[JB3000]

Hi,

I'm currently out of contract, is it advisable to continue to take a salary?

Thanks

Depends...............it may beneficial...................then again it may not

As stated above, get an accountant if you are unwilling to provide full details in your post, e.g. tax year to date gross salary, tax year to date dividends, retained profit, IR35 status, future plans, etc.

How do you expect anyone to help you if you don't bother to provide full details?

[TheCyclingProgrammer]

If you have reserves then it may well be worth paying yourself a salary equal to the personal allowance in order to benefit from a reduction in corporation tax.

If you're not actively pursuing contracts or working then I suppose HMRC could make an argument that the salary was not wholly and exclusively for business purposes, especially if it resulted in an operating loss, but I think it would be unlikely.

Of course there's absolutely nothing stopping you from taking dividends as long as you have retained profit in the company.

[Laxmi]

Thanks

Thanks for all your responses.

[mudskipper]

Depending on your circumstances, if you're not paying a salary you may be able to claim JSA...

[tractor]

...

If you have reserves then it may well be worth paying yourself a salary equal to the personal allowance in order to benefit from a reduction in corporation tax.

If you're not actively pursuing contracts or working then I suppose HMRC could make an argument that the salary was not wholly and exclusively for business purposes, especially if it resulted in an operating loss, but I think it would be unlikely.

Of course there's absolutely nothing stopping you from taking dividends as long as you have retained profit in the company.

This way, your NI contribution for the period will be taken care of also which is worth mentioning, but the CT reduction only works if you have any revenue in this company year (not taking into account any loss you can carry back/forward because we don't know your circumstances).

[Scrag Meister]

I've only been benched once, bar 4 days waiting for paperwork to appear, and I just kept paying salary as I did during the contract prior.

as long as you have the money available you still need to live, pay the mortgage, bills etc.....