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Posted 19 days ago by patr1xcore
Hello, I would like to ask a few questions before closing my LTD company. Most importantly, I need to complete the accounting by April. I only had two transactions in my business bank account from customers, so there won't be much to do. However: I borrowed £325 from my company as a "Director's Loan" in August last year, and I need to repay it. I know I can simply transfer this amount back to the business bank account to settle it. However, I need that money, which brings me to my second point. After repaying this loan, could I transfer the same amount back to myself as a salary? I believe this is below the Lower Earnings Limit of £123 per week, meaning I wouldn’t need to register for PAYE. Please correct me if I am wrong, as I find this a bit confusing. Throughout my company's existence, I have never paid myself from the business bank account, so this would be the first and last salary payment before closing the company. If I am unable to pay myself in this way, what other options do I have to withdraw the money? Essentially, what happens to the remaining funds in the business bank account if I close the company? Would I be able to claim this one-time salary payment as a business expense when completing the accounting? I know I am a bit late in sorting this out, but I either didn't find the time or simply forgot about it, as I am no longer running the company. Thank you.
Posted 13 days ago by HMRC Admin 21 Response
Hi,
If you do not have any other employees and you do not have any other PAYE inome, such as another employement or pension, and are not in receipt of any taxable benefits and your company does not provide Benefits-in-Kind and the company is not a subcontractor in the Construction Industry Scheme (CIS) claiming CIS deductions suffered then you do not require a PAYE scheme and any salary/wage you pay does not need to be reported through payroll although you should keep internal records of any salary you are paid.
Thank you.

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