How could my LTD company pay me as a human, not via 'Salary'

How could my LTD company pay me as a human, not via 'Salary'

Postby fredqwerty » Sun May 31, 2009 9:31 pm

In my capacity as director I currently pay myself via Salary and dividends.
Both are to a PERSON and so there is Employers NI & Employees NI & Tax.
Obviously I could just pay cash to the human non-taxpayer me, bypassing any other bank accounts.

How do I show this in my accounting... paid out via a 'Miscellaneous Expenses' account?
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Re: How could my LTD company pay me as a human, not via 'Salary'

Postby Andrew » Sun May 31, 2009 9:35 pm

Most self employed people i know pay themselves the minimum wage, take the rest as dividends, and put down a shit load of expenses, but you will still pay some tax/ni
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Re: How could my LTD company pay me as a human, not via 'Salary'

Postby fredqwerty » Mon Jun 01, 2009 2:39 pm

That's what I do too.

I'm trying to look at it from the USA perspective.
The USA de-taxers use the argument that:- a man's wages = his labour.
It is a 1:1 exchange & so there is NO profit made.
Analysis of the US Income Tax Act shows that tax is really only applicable to profits made by (artificial person) Taxpayer entities.
There is no possibility of profit on the labour of someone acting in their capacity of a Natural Person.
I would need to see a believable analysis of the UK act before I jumped off this cliff.

A Natural Person has no National Insurance number and so no employer/employee NI can be due.
But the records of a LTD company have to show the money leaving its accounts via the correct route.
(balance sheet, Profit & Loss type stuff. I'm no accountant)
I don't want to give the Inland Revenue an easy way to hassle the company (me) as well as the natural person (me again... doh!)
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Re: How could my LTD company pay me as a human, not via 'Salary'

Postby Andrew » Mon Jun 01, 2009 3:23 pm

Ive spent 10's of hours reading throuh and trying to disect the british income tax acts, sections and subsections etc etc, and its a minefield of confusion and cyclic references, i dont think its going to be done the way it has in the U.S, our country is the core of the elite and our income tax law is perhaps the most confusing of all the worlds tax law.

i would love someone to prove me wrong but its no easy task, especially as the HMRC refuse to give you the legal definitions in a non cyclic definition way.

Maybe if your clients have known you a long time he could use you as a freelance sole trader, and drop the LTD company part as i have (They can pay you by Name (of PERSON) as both a Human Being and a Coropration are considered to have equal rights and benefits under law).

Blacks Law Dictionary 8th Edition

person.
1 . A human being. ---- Also termed natural person.
2. The living body of a human being.
3. An entity (such as a corporation) that is recognized by law as having most of the rights and duties of a human being.


Now i just tell the HMRC to point me to the Law of this land that enables them to ignore the aiding and beting act in regards to war crimes by our government in demanding tax from me, and to issue me with a signed affidavit by Her Majesty the Queen and co-signed by our Prime Minister and the Attorney General giving me permission to brake the related national and international laws.

Theyve left me alone so far...
"A human being is a part of the Universe, limited only in time and space. He experiences himself and his thoughts as separated from the rest, like an optical delusion of his consciousness."
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Re: How could my LTD company pay me as a human, not via 'Salary'

Postby huntingross » Mon Jun 01, 2009 9:29 pm

I agree with Andrew with the cyclic confusion....and FredQ, I believe you have a point.....I wrote an FOI based on the case where the USA guy won against the IRS on the basis of labour in exchange for compensation....the point being that in your company books you would have an exchange balancing to zero
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