PAYE and LTD

[simonsays]

Hi,

I have bookmarked loads of threads which have answered many questions - thanks!

I am employed (always have been!) and have the opportunity to earn money for services on an hourly rate/contracted amount per month -depending on the client.
The plan is to use my employeed position to live on and the ltd as extra money (for holidays etc) knowing that should I be made redundant it is ready to be used for contracting without delay.
Can money be extracted in this way, or do things become complicated being employeed and listed as a director? Nothing in contract of employment to prevent this by the way.
Also: Would it be entering another ball game should companies require me to purchase things (such as software licensing) on their behalf?

Thanks for looking.

[Gonzo]

I can't foresee any major issues with taking dividend income from yourco while still employed by a separate employer as described.

You would have to start submitting a self-assessment tax return every year which you might not be doing currently, but that is all.

That is of course assuming that you don't start providing services to your current PAYE employer, but that is a whole separate can of worms.

[TykeMerc]

What Gonzo said is spot on as far as I'm concerned.

[simonsays]

That's excellent news, thanks!

That is of course assuming that you don't start providing services to your current PAYE employer, but that is a whole separate can of worms.

That may well be an option, although I have started reading about IR35 and my understanding is that if "most" (not sure of the exact value) of my income would be from what is now my employeer, it's difficult to prove that I am not still PAYE with them.

Thanks again!

[Mart001]

The IR35 is on the contract for the work, so if the extra work falls outside of your current job description and the contract falls outside of IR35 (place of work, hours etc) there shouldnt be a problem

[Bengal]

IR35 has nothing to do with the job in which you are employed. It only concerns itself on assignments/services you provide through your Ltd company.