What's the best way to handle PayPal?

[Chris Serella]

Chris,
you should speak to your accountant of course, but it is almost certainty best to pay yourself a salary of £672/month. Each month the salary can't be paid, then the company owes the money to the director, and it goes into a director loan account. The accountant needs to notify HMRC of the salary payment via an RTI submission.

Each month, you then get credited with National Insurance, despite none is paid as long as you don't go over £672/month. In fact, any salary over about £450/month (not sure of the exact number), gets credited as National Insurance, but does not cost the company or yourself any money!

I'm not an accountant - like you I run a small business, and have been in the situation of not being able to pay a salary. Don't just ignore it, and keep putting money into the company. Instead, add it to the loan the company owes you.

Dave

Thank you Dave that is helpful, I presume that in maintaining a director loan account that the company will later "repay" the loan, in doing so pays my salary. As you suggest speaking to an accountant is going to be needed, I knew that it wasnt going to be simple but i had not imagined it to be this complicated.