Just looking for a bit of advice. I have just set up as a CIC, we have a board of Directors, but initially I will be the only one getting paid for the work. I jsut wondered how exactly I go about paying myself.
Do I hire myself as a employee?
Also, as we are just starting we are not making regular money, so how do I go about setting a salary if I wont be able to pay it all the time?
I've looked everywhere but can't find anything!
No Luiz, didn't find an answer. I think I am going to employ myself on a zero hour contract, but pay myself as many hours as money I earned until we get more money in. Then maybe change it to a permanent salary.
There is quite a lot of information within this type of question Darrell, do have a look in the Accounts Group http://cicassoc.ning.com/group/accountsgroup for members who offer their services in this area and to post further questions.
Yes, your paid work will almost certainly regarded as employee earnings. If you'll be drawing salary as the income is available in effect the CIC will be building a debt to you when it cant pay. But your payment terms can be flexible to cover this, also you can look at Director loan agreements.
In simple terms the solutions to this are exactly the same as in normal companies, so you should find some good guidance with a quick google.
Its an area that is technical, so advise you get professional help. Perhaps some of the accountants in the group above will answer if you post there
Best of luck
Can you not freelance for your company?
This is an area based on very specific individual circumstances so we advise you receive professional advice, but very generically:
You need to break the work for the CIC into two types, that of a Director and that of day to day activity, for example marketing.
The Director work would never be regarded as freelance/self-employed.
Now to the marketing, if for example you were doing marketing work for 10 other organisations it might be easy to regard the marketing you do for the CIC as part of that wider self-employed activity.
If you are only marketing for the CIC it would be hard to make the case that it is freelance.
The Accounts Group has some excellent professionals on hand that you can mail direct on the network