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What salaries are startup founders allowed to pay themselves?


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In the UK, startup founders can set their own salaries, but there are several considerations to keep in mind:

  • Reasonableness: Salaries should be reasonable and justifiable based on the company's financial status and industry standards.
  • Company's Financial Health: Ensure the salary does not jeopardise the company's cash flow and growth potential.
  • Investor Agreements: Adhere to any salary restrictions or guidelines set by investors or funding agreements.
  • Minimum Wage Compliance: At least meet the national minimum wage requirements.
  • Tax Implications: Be mindful of personal and corporate tax obligations.

Of course, check with your company accountant - but as a rule, these are the guidelines. I'm not an accountant, but have experience in the industry - please seek your accountant's guidance.

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