Hi.
I have recently been on contracts within IR35 - my Company has retained profit from previous contracts when I did work outside IR35.
Can I still pay myself a salary / Directors renumeration from my companies retained profit whilst I'm not in contract? I have been told the company has to have funds coming in to be able to draw a salary from it --- but I have funds already there from previous years contracts. Granted, I'm not on a contract at the moment but I can't see why I can't take a salary from reatained profits?
Thanks.
Replies (2)
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Six questions all about this company it seems.
Your accountant will be able to help you with this one.
The question is whether the company has any surplus cash to pay you. It can only pay you in cash, not in retained profits.
If there is no income coming into the company currently a salary is most unlikely to be the most tax efficient method for you to extract cash. A dividend is likely to be cheaper.