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Post Info TOPIC: paid myself more salary than should have!!!
craigk


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paid myself more salary than should have!!!
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hi, ive paid myself an extra £1000 than what i had originally calculated including my tax allowance and expenses, the £1000 will be taxd overall at 38% incl ni & employers ni.

Doing end of year for 19th May and just wondering if can take a directors loan to cover the excess? The £1000 excess was in March.

any advice much appreciated.

thanks



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woody88


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Hi Craig,

Is the Payroll Year End for a Limited Company? If so, are you the sole Director or shareholder of the company?

If you are, it may be more tax efficient to pay a mix of dividends and salary in the future.

I'm sure that the more experienced members of the forum will be able to assist further.

Ben 



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craigk


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Hi Woody,

yes its fora ltd co and there are 3 directors but I am the only one on the payroll. cant pay dividends as the company has made a loss for the 2 previous years.

 

thanks



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woody88


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Hi Craig,

Based on the fact the company does not make a profit, as long as you have money owed to you in your Directors Loan Account, this is not a problem. The journals required are Dr Directors Loan Account and Cr either Cash or Bank depending on how the £ 1,000 was paid.

Hope this helps.

Ben



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