united-kingdom, salary, private-company, ltdIs it possible to register a private limited company in the UK with myself as the sole director being paid no salary until the company starts making profit?
Is it then easy to move from paying nothing to setting up a salary?
Also, assuming constant growth, would it be possible to keep increasing the salary? (I am aware of dividends - but if to start with I could only afford to pay out a minimum wage salary, I would want to increase that if an increase in profit allowed)
Is it possible to register a private limited company in the UK with myself as the sole director being paid no salary until the company starts making profit?
Yes. A limited company can exist with no expenses at all.
Is it then easy to move from paying nothing to setting up a salary?
Yes. Either register with the taxman to begin paying salary using PAYE, or pay without tax deducted and declare it on your self-assessment form at the end of the tax year.
Also, assuming constant growth, would it be possible to keep increasing the salary?
Yes. You need to make sure that it's taxed appropriately, that's the only real issue.
If you're the sole owner of the limited company then it may be more tax-efficient to take money out in dividends rather than salary, but there are some restrictions on this: see the 'IR35' info on the HMRC website or consult a tax advisor.
Oh, I forgot to mention Employer's Liability Insurance. You need to take a look at that too.
All content is licensed under CC BY-SA 3.0.