A client approcchead me regarding way to extract funds from the company. Actually, there are 2 directors (also shareholders) - one is getting a salary (PAYE+NIC paid) and one is invoicing the company as a self-employed.
I explained the client that:
- the best way to extract funds from the company is a combination of dividends and salary
- the second director cannot invoice the Co. as a self-employed, but he is supposed to be taxed under PAYE
- they also suggested to invoice the company through another company where they are shareholders, but this is would be caught by IR35 - service company.
Coudl you please confirm that the above is correct and that there are no other efficient option to extract funds from teh Co.