Hi,
I'm a bit late with registering my limited company for PAYE, so Im going to do this first week Aug, Im looking to claim the 8,060 salary (670/month). Clearly Ive missed out April-July.
1) Am I right in saying for the missing 4 months I can only claim the max without registration i.e. approx £450/month or is there a way of going back retrospectively and taking the 670?
Thanks
Replies (3)
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I assume that you have been a director of your company since before April and that you have a cumulative PAYE code. If so, pay yourself £3,350 (5 x £670) in August and you will still have no tax or NI deductions.
I am assuming you are a Director.
You have not as yet drawn any salary so you are not late registering.
Once you have opened a scheme you then decide upon payment - as a Director you actually have an annual earnings period for tax and national insurance - and the earnings period runs from the date you were appointed as Director as opposed to the date the scheme is opened. This means that as long as you set the software to annual for NIC you can pay 5 months worth of the annual figure in August and then continue monthly, or you could pay £8060 in March. You should also know that you do not physically need to take the money out or the company. AS long as you document the salary it can stay in the company as a loan from you until you actually need to spend it.
You should be discussing this in detail with your accountant as there are far more factors to consider this year to get to the optimum salary.
Agree with the general thrust of what the others say.
I'm also assuming that you're a director and that you were appointed before 6th April 2016.
Directors have an annual earnings period. You'll pay NI based on what you get during 2016/17. How that's distributed throughout the year is irrelevant.
You need to make sure you're shown as a director when you submit your PAYE.
If you've been appointed since 6th April 2016, you'll need to scale down that £8060 proportionately.