Hello,
Basically, I was made redundant a couple of months ago and have been looking for work since. I was offered an excellent contract job (initially only 3 months, possibility of it being extended) a few weeks ago, which I need to be a limited company for and have now set up. It also means I can do ad-hoc work for my old company (there is and will be work available).
I've registered my limited company (and bank account etc.) and have had a contract from the company I will be working for (through a recruitment consultant) and will be starting later this week.
As I am the only person in the the company (sole director), I am a bit confused about paying myself a salary and dividends. I understand I can pay myself the minimum amount and then pay the rest in dividends but how do I formally do this? Where does NI fit into this? Also, sort of along the same lines: is there a cheap software/Excel accounting tool I can use to cover these things?
I've spent quite a long time researching all of this but I can't seem to get clear and up-to-date answers, so I'd be grateful if someone could clarify these point for me.
Also, at the end of this contract it's possible I won't be doing any more contracting work as I am aiming for a permenant job, so I'm not very keen on paying anyone to tell me everything I need to know!
Thanks in advance for any replies.
LM
Basically, I was made redundant a couple of months ago and have been looking for work since. I was offered an excellent contract job (initially only 3 months, possibility of it being extended) a few weeks ago, which I need to be a limited company for and have now set up. It also means I can do ad-hoc work for my old company (there is and will be work available).
I've registered my limited company (and bank account etc.) and have had a contract from the company I will be working for (through a recruitment consultant) and will be starting later this week.
As I am the only person in the the company (sole director), I am a bit confused about paying myself a salary and dividends. I understand I can pay myself the minimum amount and then pay the rest in dividends but how do I formally do this? Where does NI fit into this? Also, sort of along the same lines: is there a cheap software/Excel accounting tool I can use to cover these things?
I've spent quite a long time researching all of this but I can't seem to get clear and up-to-date answers, so I'd be grateful if someone could clarify these point for me.
Also, at the end of this contract it's possible I won't be doing any more contracting work as I am aiming for a permenant job, so I'm not very keen on paying anyone to tell me everything I need to know!
Thanks in advance for any replies.
LM
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