Personal Finance & Money Asked on December 9, 2020
I’m an IT contractor (UK). I work and invoice through a limited company. When the pandemic began I was on a voluntary break between contracts. Obviously the market went very quiet.
I decided to continue on a break and use the time to do some training and pursue personal projects. Both work related. In that time I have been living off some savings. I simply transfer the money from a savings account to my personal account as I need it.
My concern is is that there’s no financial activity through my business and that’s of concern because I hope to get a mortgage within the next couple of years. Given that what I’m actually doing during office hours is work related training and projects, could I actually be paying myself through my business from my savings somehow?
Something like: Ltd company raises an invoice addressed to me, I pay it from savings through my business account.
I realise this would become taxable income where before it wasn’t.
Caveat 1: I’m not the sharpest tool in the box when it comes to finances :o) so if this is the dumbest idea you’ve ever heard please do set me straight.
Caveat 2: If I’m actually suggesting something illegal :-O then rest assured it’s my naiveté at work here not any intended malfeasance! (See Caveat 1)
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