My client is a sole Director of her Limited Company.
She was employed by a large bank up until February this year on a high salary.
Set up her limited company in May this year.
She has started to generate income and has now set up her payroll scheme.
She does earn £1000 a month from another company which is done through their payroll scheme. (as non exec director)
HMRC have given her a tax code of D1 w1m1 in her new company which seems to reflect her high earning from last year. Does this sound right?
What would be the best way to pay herself in her new company? Dividends only OR a salary/dividend mix? If she takes he salary does the D1 w1m1 sound right?
Always find tax coding a bit confusing
Thanks
Replies (4)
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Even if the code is confusing you (really?) surely you can do the maths. Is a salary appropriate if she is earning 12 x £1000 elsewhere?
No salary
I agree with the other posts here. I would not process a salary for this woman as there is no benefit.