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Hi Folks,Long time since I have been on here.
We are in the second year of our three year agricultural tie conditions.The buisness has taken off to the extent I have resigned from my job to look after the Alpacas full time.
We have achieved what we belive to be the Min. Agricultural wage already this year (possibly)dependant on what you read ..we have based it on £17.000.pa
We have another 18 months or so to go to the TEST. Question can I pay myself out of the buisness pot now .How will that be looked upon by the enemy??I take it they will look at the accounts and see we have made the required monies and full details of in/out accounts available,ie capital purchases etc.
I am just worried that they will get me some how!!!!!!!
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Wages
Started By
Burl
, 06 Sep 2010 14:16
Back to top
#2
Posted 06 September 2010 - 16:59
greenmeadow
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- Book Owners
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- 51 posts
Goose
Hi,
If you're trading in your own name (i.e. not limited) your annual accounts will show a profit based on your incomings and outgoings. Any personal drawings are not counted as outgoings for the purpose of calculating taxable profit, so it's fine to pay yourself a wage. By the way show the planners your taxable income self assesment form for your income as the profit in the profit and loss account is calculated slightly differently and may show a lower figure.
If you're trading as a limited company and wage you pay yourself will be as an employee of the company and will reduce the company's profits so will need to show the planners the company accounts and your P60. Profits not taken as wages can be taken out of the company as a shareholders dividend and has the advantage of not being liable to National Insurance.
It would pay to check the above with your accountant to be certain.
Regards,
Green Meadow
If you're trading in your own name (i.e. not limited) your annual accounts will show a profit based on your incomings and outgoings. Any personal drawings are not counted as outgoings for the purpose of calculating taxable profit, so it's fine to pay yourself a wage. By the way show the planners your taxable income self assesment form for your income as the profit in the profit and loss account is calculated slightly differently and may show a lower figure.
If you're trading as a limited company and wage you pay yourself will be as an employee of the company and will reduce the company's profits so will need to show the planners the company accounts and your P60. Profits not taken as wages can be taken out of the company as a shareholders dividend and has the advantage of not being liable to National Insurance.
It would pay to check the above with your accountant to be certain.
Regards,
Green Meadow
#3
Posted 06 September 2010 - 17:23
che
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- Book Owners
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- 1,166 posts
Lord of the Manor
- LocationSHROPSHIRE
Hi Burl
Nice to see some one entering the home straight. You also mentioned capital purchases which attract write down allowances over a period of years and this could result in a higher tax bill in the short term. This however could play into your hands so like Greenmeadow said worth talking to an accountant. Good luck on the home straight.
Dave C
Nice to see some one entering the home straight. You also mentioned capital purchases which attract write down allowances over a period of years and this could result in a higher tax bill in the short term. This however could play into your hands so like Greenmeadow said worth talking to an accountant. Good luck on the home straight.
Dave C
che
