How to Pay Yourself Salary & Dividends - Part 2

[@JuniperLynx]

Hey guys, thanks for watching our video on How to Pay Yourself Salary & Dividends! If you want us to take care of things for you please visit: juniperlynx.com/contact/ If you need help leave a comment.

[@bjemmettsmith]

Been watching quite a few of your videos now over the recent months. They are excellent by the way. I'll likely be in contact and wanting some accountancy support. I'm a contractor in working in Data Analytics and consultancy, looking to operate through a limited company from April, following the conclusion of my current PAYE contract that ends in March.

[@LouDixon-t7m]

Fantastic video. This video so helpful. Thanks for the video.

[@JuniperLynx]

thanks for your amazing comment!

[@bjemmettsmith]

Great as always.

[@lawrencer25]

Another fantastic video. Thank you very much 👍👍🥂🎉

[@alanburgess578]

Really enjoying your videos :) very useful and very well explained! .. I have a question on personal allowance. I have changed from employed to being a director of my own Ltd company. I have already been paying tax and NI on my previous role, how does that effect what I can/should pay myself now to be tax efficeint?

[@JuniperLynx]

Thanks for your comment! All previous income during the year would be factored in when working out your available allowances and lower rate threshold. Our monthly accountancy service includes support with staying tax efficient each year. Feel free to contact us at [e-mail] if you're interested

[@yakubmohamoud]

This is great content and I am using this a lot. Can you explain how you calculated the NI please (might be worth breaking it down in a video and talking it through it with us)

[@webOworks]

Very helpful videos. Just one question, can we reimburse the FreeAgent subscription fee as an expense?

[@JuniperLynx]

Thanks for your comment! Software costs for the purposes of running your business (such as accounting for its transactions) would be absolutely fine as a legitimate business expense :)

[@morosmith8710]

Hi Caroline, great videos very informative. Im a little confused, in Pt.1 the NI threshold you said was £8788, here lousy its £9500.?

[@JuniperLynx]

Thanks for your comment! The Employee's NI threshold is £9,500 (the NI that gets deducted from salary). However there is a separate Employer's NI threshold of £8,788 (the NI that the employer has to pay to HMRC).

[@oleglvl]

Thank you for video, very interesting. New in that area))

[@xChikyx]

if i'm in another country, and my company is is UK, do these numbers till apply? I'm talking about NI for example...

[@mahboobsikandar7869]

Watching you from Pakistan 👍

[@pavanamarnani440]

Do you know any software that would link accounts and inventory together. That is not too expensive

[@Omarj1986]

Question. If you're Employed and start a Limited Company whilst still being employed. What's the best way to pay yourself? Purely Dividends I assume, due to the fact the Personal Allowance and the NI thresholds have already been used by the PAYE tax through employer? That would really be helpful.

[@thefomemister]

following

[@JuniperLynx]

Basically, dividends would be most tax efficient in this case :) You can also leave money in the company to help it grow from additional advertising etc. You would only receive the income as dividends when you physically take out money from the business.

[@pamu9366]

Hi I am looking some help with corporation tax for my small limited company , there's any chance you can help.

[@nosaj2001]

Hi I have a question: I am a new limited company which at the moment is not seeing much profit and still trying to build my customer base. Is it allowable to give yourself a wage taking what little salary you can while building up.

[@JuniperLynx]

As a company director, you can choose to pay yourself any salary you like. The minimum wage requirements don't apply in this case. Running what salary you can while building up the business is absolutely fine.

[@nosaj2001]

@@JuniperLynx Thankyou for that clarity

[@rezamotin7305]

Is it true you can show a salary of £25k which may be used as a mortgage application but if the next year you made a loss then you would basically recoup the tax back that you paid on the 25k

[@masoodahmed1953]

Hi, what difference would it be if someone uses Ltd company for their PAYE locum jobs?

[@beatapolus8558]

Can you only take just dividends out without paying any salary for yourself?

[@JuniperLynx]

Thanks for your question! If you are a company director and shareholder, then you can pay yourself any amount of salary (even £0). If you're the only shareholder and the company has available profit to pay dividends, then you would be able to take these regardless of your salary. Basically yes :) This is only recommended if you already have other employment income where it wouldn't make sense to receive further salary.

[@alfonsprifti7402]

Hello, hope you’re well! I’ve been sole trader for nearly 8 years but from January this year I did set up my ltd. I’m the only director but I also employ my wife so we both have a salary. Because of vovid 19 I’m not making any money but I have changed myself’s and my wife’s salary nearly every month since I had my ltd running. because.. reason one I was changing my mind for the amount I was Paying myself and my wife, then covid 19 stopped me working completely so I had no enough money to pay our salary’s. is this ok what I’ve done until work starts again and Then hopefully I can pay myself and wife more? I’m Sorry for my writing, but please answer my questions if you can. Thank you 🙏 Alfons

[@williamsandberg]

Hi Caroline! How do I get in direct contact with you? For advice on private Limited company.

[@JuniperLynx]

Thanks for your comment! Feel free to email us at [e-mail]

[@williamsandberg]

Thank you, I will send to your email address my questions. Thank you Caroline!