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Director's remuneration

Director's remuneration

Hi all,

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.

Thanks,

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23rd Feb 2016 16:15

Just out of interest

what's your role in all of this?

Do you; deal with the book-keeping, prepare the final accounts, service the payroll etc?

 

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By Kevkava
23rd Feb 2016 16:23

Clients love making things complicated!

Clients love making thongs complicated! The guy who's invoicing his own company as self employed may well be paying more tax than he needs to.; and may be a disguised employee. The alternative, of invoicing company A from company B seems pointless - they still need to extract funds from company B....I suppose they could form company C.....and D.....and...

Your other posts talk of clients - if this is your client you need to sit down with them and carefully go through all the possibilities for them personally and for their company.

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23rd Feb 2016 18:54

Typo

Kevkava wrote:

Clients love making thongs complicated! 

I don't usually pick up on typos but, sometimes, they're funny.

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By Alex_T
24th Feb 2016 11:53

Belly laugh!

lionofludesch wrote:

Kevkava wrote:

Clients love making thongs complicated! 

I don't usually pick up on typos but, sometimes, they're funny.

 

Belly laugh! Cheers for brightening my day..

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By Kevkava
24th Feb 2016 11:20

Typo

Apologies: thongs aren't what they used to be!

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24th Feb 2016 16:35

And, there I was, wondering what

client's - love making - had to do with it!

 

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