I am about to set up my own limited company. Unless I decide to ask my wife to help me with its running, I expect to be the only employee. I am aware of the topic of only paying up to the LEL to avoid PAYE and NIC, and then declaring dividends if/when suitable income levels are available. However, I anticipate there will be several months before I start genetrating income (maybe 3 or 4 at least), and then many more months (perhaps as much as a year) before I reach my full-quota of desired clients. Does it make sense to start "paying" a salary from the company to myself in the early months, if I just have to inject cash into the company (by way of a loan, I presume), only to pay it back to myself, where perhaps the only benefit is early trading losses to offset agains subsequent trading profits, albeit it at up to 19% relief when sufficient profits are ultiamtely made. What am I missing (politely, please!)?
23rd Jan 2019
New Company and Payroll
When do I start running a payroll in a new company
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