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Topic starter
04/09/2014 3:31 pm
I am about half way through my PTD and my earnings have risen dramatically so much so that I am in the process of setting up a Ltd company. I am the director of the company and I will be contracting within the oil and gas industry. My question is:
As a director of my own business will my company profits be taken into account for my repayments or will it only be based on the salary I pay myself from the company.
Thanks
Stewart
04/09/2014 3:35 pm
Welcome to the forum stubo79.
That's an interesting question, I'm looking forward to hearing what our experts have to say about it.
Some thoughts:
A limited company is a separate "legal person" to yourself, so it is your earnings rather than the company's earnings that will count as being your income.
However, if you leave money in the company its value will increase. I assume that you'll be the only shareholder? If so, you'll potentially be acquiring an asset (the value of your shares) that your trustee might look to realise.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
04/09/2014 3:43 pm
Hi thanks for quick response,
There will be one other shareholder, not myself, most probably a family member. This hasnt been finalised yet though.
thanks
Stewart
05/09/2014 3:44 pm
Trust Deed Assistant is spot on. One way or another your Trustee could have a claim on your share of the profits of the company, whether through the drawings you take/salary paid, or by assessing the value of your shareholding as an asset instead.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
05/09/2014 3:49 pm
Hi stubo79
As Director, you would be paid a salary and any contribution would be based on the salary. If the shareholding was minimal, then the Trustee could only have an interest in the value of that minimal shareholding.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
