Salary and dividend Income

Hi, everybody,
I have one client who has open her own ltd company and work as contractor to different company. Is it ok she get salary as director and rest of income as dividend for the share holder.However she works only for one company as contractor, I am bit confuse because of income will come from only one company .Will be any problem in terms of IR-35.Please guide me in right decision.

Answers

  • burg
    burg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    You need to explore IR35 and see if you believe she is caught by it or not. From my experience, in most cases IR35 need not be applied but you should still check.
    Regards,

    Burg
  • usrijana
    usrijana Registered Posts: 4
    Thank you very much for your comment, highly appreciated for your help.
  • usrijana
    usrijana Registered Posts: 4
    I am thinking to buy software which will be better for the practice please??
  • burg
    burg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    There are many different options around. VT with Tax Calc seems to be a popular choice for those starting out. We use Capium.
    Regards,

    Burg
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