stevio
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Post by stevio on May 6, 2016 22:06:32 GMT
If we do it, I will be the one doing the book-keeping  . I guess I'd have to register the company for PAYE with HMRC so that they know what's going on, and get some software to do it. Lots of hassle but it's "free" money. The only slight issue would be justifying her salary because she'd not actually be doing a whole lot. It seems a bit dodgy. Does anyone have thoughts/experience on this? I've found no need for any bought-in software; HMRC's free "Basic PAYE Tools" is perfectly adequate (once you have the company's Government Gateway log-in set-up). I submit monthly "Period with no payments to employees" notices for 11 months of the year (about 30 seconds work) and then draw my annual salary in month 12. Hi Stevet I'm going to be doing it this way this tax year as I might need to vary my salary based on interest received, to keep the 5k savings allowance Do you just make an EPR submission? Looking at this looks like you can make 1x EPR for 11 months, saves remembering each month
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SteveT
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Post by SteveT on May 7, 2016 5:24:55 GMT
I find that by returning a monthly "Period with no payments" notice, I don't get chased for missing tax payments in the meantime.
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Post by dualinvestor on May 7, 2016 10:42:46 GMT
Apologies if someone has already mentioned this but you need to be wary of the Closed Investment Company rules if the company does not have any other activity. www.hmrc.gov.uk/manuals/ctmanual/ctm60710.htmBeing defined as such by HMRC severly limits the amounts and what expenses can be charged against Corporation Tax. Seek appropriate advice. |
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locutus
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Post by locutus on May 7, 2016 11:43:15 GMT
Apologies if someone has already mentioned this but you need to be wary of the Closed Investment Company rules if the company does not have any other activity. www.hmrc.gov.uk/manuals/ctmanual/ctm60710.htmBeing defined as such by HMRC severly limits the amounts and what expenses can be charged against Corporation Tax. Seek appropriate advice. I had a read but it is full of double negatives and can't be deciphered by mere laymen like me. Do you have a simplified explanation of what it says?
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stevio
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Post by stevio on May 7, 2016 16:46:03 GMT
Apologies if someone has already mentioned this but you need to be wary of the Closed Investment Company rules if the company does not have any other activity. www.hmrc.gov.uk/manuals/ctmanual/ctm60710.htmBeing defined as such by HMRC severly limits the amounts and what expenses can be charged against Corporation Tax. Seek appropriate advice. This is all to do with qualifying for Entrepreneurs Relief when you close down the company and qualifying for the beneficial 10% CGT If the company main profits are from a trade, as most of the people's companies are here that they are also using to invest surplus company funds, then your fine
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Post by dualinvestor on May 7, 2016 16:56:00 GMT
Apologies if someone has already mentioned this but you need to be wary of the Closed Investment Company rules if the company does not have any other activity. www.hmrc.gov.uk/manuals/ctmanual/ctm60710.htmBeing defined as such by HMRC severly limits the amounts and what expenses can be charged against Corporation Tax. Seek appropriate advice. This is all to do with qualifying for Entrepreneurs Relief when you close down the company and qualifying for the beneficial 10% CGT If the company main profits are from a trade, as most of the people's companies are here that they are also using to invest surplus company funds, then your fine What trade would the company be engaged in? Edit this is a rhetorical question if you want to debate the issues you would be better off talking to an accountant who understands all the issues, not only close company rules but whether the bad debt relief rules apply to companies.
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stevio
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Post by stevio on May 7, 2016 18:00:00 GMT
This is all to do with qualifying for Entrepreneurs Relief when you close down the company and qualifying for the beneficial 10% CGT If the company main profits are from a trade, as most of the people's companies are here that they are also using to invest surplus company funds, then your fine What trade would the company be engaged in? Edit this is a rhetorical question if you want to debate the issues you would be better off talking to an accountant who understands all the issues, not only close company rules but whether the bad debt relief rules apply to companies. Rhetorical answer: Any You brought up the issue, you can debate with an accountant if you wish
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