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Director salary at early stage of new business

  • 17-03-2016 01:00AM
    #1
    CageWager
    Registered Users, Registered Users 2 Posts: 545 ✭✭✭


    I am a proprietary director of a ltd company which has been trading for 10 months and is just starting to bring in cash.

    At this stage I am looking to start paying myself a salary but given the uneven cashflow at the early stages of a business I don't want to set up a regular PAYE salary, I would prefer to take drawings - as much or as little as I can afford on a monthly basis until things even out.

    Is this an acceptable way to take money out of the company? As I am registered for self assessment do I simply keep cash aside both personally for income tax and in the company for any employer PRSI contributions etc?


Comments

  • #2
    Lockedout2
    Registered Users, Registered Users 2 Posts: 401 ✭✭Lockedout2


    Unless you are owed money that you put into the company "drawings" are salary.

    You can pay yourself what ever you want but the company is responsible for operating PAYE on this.


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