Hi,
I'm an employee in a company doing business in one industry and I've been freelancing for few months now in another industry. I want my freelancing to get some credibility so I'm planning to officially start-up with a limited company, but still keep on working in my day job. As I will be the director of my ltd do I need to register for PAYE if I'm not planning to pay myself any salary nor employ anyone?
Thank you,
Tom
Replies (2)
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No requirement
There is no requirement for the limited Company to have a payroll in place if there are no employees and the directors are not receiving salaries.
You will need to ensure that you declare any dividends you take out of the company on your self assessment though, as these may be taxable depending on the level of dividends and your other income.
No
As above, your obligations only start when you start paying wages to yourself or anyone else.
Whether you are employed elsewhere is irrelevant to that decision, though it may be important in deciding your strategy for extracting profits from the company.