Money: loaning to the LTD

[Mustang]

On the bench right now so funds in the LTD are running low.....!

If I have funds from outside the LTD is it better to:

1)just use that to live on and make use of a director being able to draw zero salary

2) Make a loan to the company and draw some form of salary as usual.

I am thinking option 1 but for some reason option 2 came to mind......

[Jason D]

On the bench right now so funds in the LTD are running low.....!

If I have funds from outside the LTD is it better to:

1)just use that to live on and make use of a director being able to draw zero salary

2) Make a loan to the company and draw some form of salary as usual.

I am thinking option 1 but for some reason option 2 came to mind......

Option 2 - Loan and payback when in funds. Will save you £87 per month in CT.

[minstrel]

Option 2 - Loan and payback when in funds. Will save you £87 per month in CT.

How does that save you £87 per month in CT? Where do you calculate the £87 from given the OP hasn't given any figures?

Surely if you loan company money and pay salary you have to pay Employers and Employees NI plus income tax.

If you pay zero salary you don't have to pay any PAYE or NI.

[Gonzo]

How does that save you £87 per month in CT? Where do you calculate the £87 from given the OP hasn't given any figures?

Surely if you loan company money and pay salary you have to pay Employers and Employees NI plus income tax.

If you pay zero salary you don't have to pay any PAYE or NI.

I think that the £87 assumes the £5,000 (ish) a year salary, which is below the threshold for NI and PAYE.