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Ltd Company Contractor- Reg NI and Tax
Posted: Wed Aug 01, 2012 7:52 pm
by Rajuk09
Hi All,
I am contractor under my ltd company, I use to pay taxes and NI for couple of years and for last 4 months , I was out of work (meaning Ltd company did not have any income) but I was paid salary. But talking with my accountant I reduced my gross salary and payed very little Tax and NO NI , so to reduce the money take n from the company. I have 2 queries here,
1) Is paying NO NI , not good for ILR ?
2) It yes for Q1 , Can I increase my salary gross again ( have 5 more months for ILR) and pay the NI amount ? will these Increase and Decrease in Salary create any problems for ILR ?
Please advice... would be great help avoiding any problems during ILR.
Kind regards
Raj
Posted: Wed Aug 01, 2012 9:30 pm
by Rajuk09
Seniors please help me
Posted: Thu Aug 02, 2012 9:56 am
by ryan2020
Rajuk09 wrote:Seniors please help me
Paying less NI is nothing to do with earning or CW. he will check your gross income.
Simple if you are not earning good salary how come you are obliged to pay high tax and NI.
They will check your company accounts, accountant letter ,invoices, payslips (match bank statement).
regarding your 2nd question at PEO CW may ask you why your salary is low and high etc. so be prepared for satisfactory answers.
best of luck
Posted: Thu Aug 02, 2012 1:10 pm
by Rajuk09
ryan2020 wrote:Rajuk09 wrote:Seniors please help me
Paying less NI is nothing to do with earning or CW. he will check your gross income.
Simple if you are not earning good salary how come you are obliged to pay high tax and NI.
They will check your company accounts, accountant letter ,invoices, payslips (match bank statement).
regarding your 2nd question at PEO CW may ask you why your salary is low and high etc. so be prepared for satisfactory answers.
best of luck
Ryan , Thank you very much for your reply. So Just to sum up , adding gross + dividends I sshould be able to match the amouts which I got while apply from T1 G from Work permit ? And NO NI does not matter.
And
Company accounts - I have it properly maintained.
Accountant Letter - Would be helpful if you can tell me what all details are needed from accountant in his letter please.
Payslips - Some months I have not paid on the same date of the payslip as its given last date of the month.I have paid 5th,10th of a month on different months , but figures do match.So this non matching dates cause any problems ?
Sal low and high - What will be the best answer if my CW ask me ? please help
Posted: Thu Aug 02, 2012 2:22 pm
by ryan2020
Ryan , Thank you very much for your reply. So Just to sum up , adding gross + dividends I sshould be able to match the amouts which I got while apply from T1 G from Work permit ? And NO NI does not matter.
And
Company accounts - I have it properly maintained.
Accountant Letter - Would be helpful if you can tell me what all details are needed from accountant in his letter please.
Payslips - Some months I have not paid on the same date of the payslip as its given last date of the month.I have paid 5th,10th of a month on different months , but figures do match.So this non matching dates cause any problems ?
Sal low and high - What will be the best answer if my CW ask me ? please help[/quote]
Accountant letter should mention NI no , company name n details and SUM of figures of income/dividends drawn from company account and self assessment
dates doesn't matter amount should match.
about salary low and high i can't answer this i don't know what the legal law regarding this. ask you accountant he knows BUT again I'm telling you questions can be asked from CW so be ready for it
Posted: Thu Aug 02, 2012 9:41 pm
by Rajuk09
ryan2020 wrote:Ryan , Thank you very much for your reply. So Just to sum up , adding gross + dividends I sshould be able to match the amouts which I got while apply from T1 G from Work permit ? And NO NI does not matter.
And
Company accounts - I have it properly maintained.
Accountant Letter - Would be helpful if you can tell me what all details are needed from accountant in his letter please.
Payslips - Some months I have not paid on the same date of the payslip as its given last date of the month.I have paid 5th,10th of a month on different months , but figures do match.So this non matching dates cause any problems ?
Sal low and high - What will be the best answer if my CW ask me ? please help
Accountant letter should mention NI no , company name n details and SUM of figures of income/dividends drawn from company account and self assessment
dates doesn't matter amount should match.
about salary low and high i can't answer this i don't know what the legal law regarding this. ask you accountant he knows BUT again I'm telling you questions can be asked from CW so be ready for it[/quote]
Thank you very much Ryan.