Take permanent role, leave IT company running?

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sinbadsailor

Registered User
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Hi,

In a nutshell:

IT Contractor, limited company.
Considering a permanent IT role for a period of no more than 12 months due to do location at this present time

1. Is it OK for me to loan money to company from wages during this time (company has a cost per month to run, disregarding my wages which will now not be paid due to role change). This would I presume, be a director loan that could be paid back once I resume work for the company after 12 months

2. What are the options for taking income from the company and the permanent role? Are we talking 42% on all monies taken (invoices for freelance work). Are certain expenses claimable still as I still plan to do build company income regardless of if I can take monies or not. Can say director fees be paid?

i presume it all biols down to can I work a fulltime job, and still do extra work for my limited company and take mones for it?
 
sinbadsailor said:
i presume it all biols down to can I work a fulltime job, and still do extra work for my limited company and take mones for it?
Click to expand...

Hi sinbad, to answer you in short, yes!

In relation to point (1) you are correct that any monies given to the company by yourself personally are treated as a director's loan and can be repaid at any stage (presuming the company has the funds in the bank account of course).

In relation to point (2), you can still claim your normal expenses i.e. any expenses incurred for the purposes of your business, which will now be any expenses incurred for your freelance work. The amount of tax payable will depend on your total income from all sources for the year. But fees or salaries taken from the company are still subject to income tax so you'll be taxed at either 20% or 41% depending on your total income and tax band etc.

In simple terms, there will be no radical change for you. You will just have an additional source of income, being a PAYE employment and presumably the level of activity in your limited company will reduce.
 
I was hoping that would be the case alright, so thanks for the reply.

Yes the level of activity in the company should decrease but knowing myself all too well my hours 'working' per week will probably increase :)
 
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