Hi, thank you for your fast replies!
To clarify, the example I gave is based on 1 Ltd Company Director being the only person in the company doing everything (no staff). The director is also not using PAYE and is not receiving any employee pay. The only revenue he receives each month is a legally declared dividend amount from the end of month profitable balance.
RE the example total profit I originally stated of 10k - this amount is the total figure earned by the Ltd company from all contracts that have paid for that 1 tax year.
Therefore with the above known, there should be no 'grey' areas of ambiguity to provide the answer to my question.
Recap:
- Company Profit = 10k
- In End of Year Accounts Company states they will pay a 'voluntary' National Insurance contribution for NI gaps 'because' there are no PAYE employees in the company. The NI 'gap' amount (for example only) is set at 3k
I believe this NI 3k outgoing cost to the Ltd company can be declared in the annual accounts as a deduction hence this 3k deduction would prove to be in your favour as taxes would only be focusing on the remaining 7k profits.
I hope that clarifies this, not sure how I can make it any clearer?
I think you are agreeing this NI 3k deduction is legal and can be added in your outgoings field in the HMRC account form.
Is that correct?
Thank you in advance...