mod note thread split from here:Ltd Co; repay loan from wife or increase husband's wage to up income? (tax question)
I have a similar question. so keep it in the same thread rather than start another.
I will be talking to my accountant in the next couple of weeks, left him alone whilst all the October 31st self assessment stuff was coming in.
My question is as follows.
I set up business in March this year (sole trader), and up until now, I haven't taken any money out of the business for wages (being living off my wifes steady income). The financing of the business start up was from savings, not a loan from bank.
Now I'm at a stage, having hired in more people and bought extra machinery etc... where the business is in a position that can sustain me taking some income.
In the back of my head, something is telling me that I should withdraw up to whatever my tax free allowance is for the year, even if it's a lump sum, otherwise I lose it for next year. Is this correct?
Should this be a repayment of directors loan in the books ...i.e Tax free?
I have a similar question. so keep it in the same thread rather than start another.
I will be talking to my accountant in the next couple of weeks, left him alone whilst all the October 31st self assessment stuff was coming in.
My question is as follows.
I set up business in March this year (sole trader), and up until now, I haven't taken any money out of the business for wages (being living off my wifes steady income). The financing of the business start up was from savings, not a loan from bank.
Now I'm at a stage, having hired in more people and bought extra machinery etc... where the business is in a position that can sustain me taking some income.
In the back of my head, something is telling me that I should withdraw up to whatever my tax free allowance is for the year, even if it's a lump sum, otherwise I lose it for next year. Is this correct?
Should this be a repayment of directors loan in the books ...i.e Tax free?
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