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Limited company-NO salary for 2 months and only dividends ?

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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girish
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Posts: 97
Joined: Tue May 15, 2007 7:40 pm

Limited company-NO salary for 2 months and only dividends ?

Post by girish » Thu Jan 19, 2012 12:26 pm

Hi,
I have just enetered into contracting starting december 1st and started my limited company. I got the payment for it on January 12th. I am due to apply for tier-1 extension in the month of DEC this year(2012)

Since i am new to the limited company procedure;i understood yesterday that i cannot take salary unless the PAYE is created which would take 2 weeks and is in process of creation

My query is how do i ensure that i tansfer the amount from my business account to show that i had continous 12 months pay to HMRC ?

Options i could think of and my accountant suggested:
1. Can i take dividend alone currently which would act as a salary?

2. Can i take the salary of Dec and Jan; 2 months later as in the month of Feb. i.e showing the payslip for Dec and JAN thus retrospectively ; but my salary on BANK ACCOUNT would show it only on Feb.

Can somebody please advise ASAP if i can choose the above options or suggest me alternative options please

Thanks
Girish

QuickSam
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Posts: 794
Joined: Mon Dec 05, 2011 3:51 pm
Location: Reading, UK

Post by QuickSam » Thu Jan 19, 2012 12:31 pm

Don't bother much. You can pay Jan - Feb salaries in March. You need to be paid for all the months that you are claiming for (continuous period).

This does not necessarily mean that you need to get these salaries into your bank account every month. You could pay Jan and Feb salary at the end of Feb and that shouldn't be an issue.

LaurenN
Newly Registered
Posts: 9
Joined: Thu Jan 12, 2012 7:16 pm

Post by LaurenN » Thu Jan 19, 2012 2:09 pm

You dont actually have to have worked for the entire 12 month period. If you earn enough money in 6 months of the 12 month period that is all that matters.

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