# Director's salary



## jolenes (May 26, 2013)

I don't know if anyone can help but I'll try. I'm completely new to this and I will register my company as a LTD. What confuses me a lot is a company money and my salary. 

EXAMPLE: I will make within first 3 years a million or maybe 2. Everyone suggest that I should have a salary up to 30k max per year to avoid paying taxes (???). I'm really not going into this business to have some basic salary. People are buying houses after a year or two and so want I as well. What is more, I can't take the company's money (?) since I would not use it for the companies needs. Then again, I was reading some articles hoe some CEO's have a 500k salary or even 1 million.

You might find this stupid but I don't get it how this works... If my brand will grow (tok tok!), I don't see what's the point to wait 10 years to buy (e.g.) a house, while company will be worth of 3 million. I hope someone can explain somehow. PS: I'm in the UK.

Thanks


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## platnumcn (Aug 5, 2013)

See, it works in three ways, 

1. You want to keep things clean by showing your sales, and pay the exact taxes and have very little profit at the end of the day

2. You want to keep things clean by showing your sales and pay less taxes by showing reduced salary and have a lot of profit at the end of the day

3. You want to keep things dirty by showing less of sales and paying less taxes by showing reduced taxes and have enough profit to buy a home in a year or two. 

This is my understanding on how things work in all countries and not just UK.


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