How should our Limited Company die?

In message , Tim writes

If it was excessive to the detriment of creditors or shareholders, then yes.

Not if he knows the company is insolvent and trading at a loss and the payment of that salary is to the detriment of creditors.

Except doing it your way is likely to lead to him being barred as a director and of course the IT and NI wouldnt be refunded. Not a very good idea.

Far better to do it the other way, as most small companies do. Take it as a loan then at the end of the year when fiddling, sorry I meant 'finalising' ,the Company accounts and the Directors Tax return it can be cleared or not with salary, bonus or dividend. Far more tax efficient that your method.

Reply to
John Boyle
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"John Boyle" wrote

I wasn't thinking about anything *excessive*.

"John Boyle" wrote

What about National Minimum Wage? [Not on tasks related to being an officer of the company, but on tasks related to the day-to-day business.]

"John Boyle" wrote

He also can't pay less than NMW!

"John Boyle" wrote

I didn't say anything about the tax-efficiency of the method. Just that it was *possible*!

Reply to
Tim

In message , Tim writes

Yes, an acceptable salary would likely be OK, after all, wages up to a certain limit are preferential creditors.

He can to a director.

I didnt say it wasnt possible. I just said my way was better.

Reply to
John Boyle

"John Boyle" wrote

I thought that was just in relation to his role as an officer of the company? For any other work done for the company, isn't NMW relevant?

"John Boyle" wrote

Hmmmm. Then why did you say "not so" in your following reply? :-

Reply to
Tim

In message , Tim writes

Yes, but that wouldnt be for his role as a director.

You are combining different posts from different people incorrectly, as I think you well know.

This is quite a different point isnt it? Just because the company has cash does not always mean it has enough money to pay a salary. It may do sometimes but on other occasions it may not, as I think I have made clear. This is quite a different point to whether has the ability to, or which is the best way.

Reply to
John Boyle

Make sure that your quote is for a fixed price come what may and get it in writing. Do not trust any professional.

Reply to
Stickems.

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