have this ltd co now. not by choice! and this is my only job and the salary is 6000 per annum do I need to register for PAYE? and if so is it 12% of the income I need to pay for NIc or 20% ? on the HMRC site says that almost all employer have to register and pay at basic rate which imply few exceoptions don't how can I find out what to do and wheter I am an exception or not.
Any link or advice is greatly apprecieted
Replies (5)
Please login or register to join the discussion.
Yes
http://hmrc.gov.uk/paye/intro/register.htm#1
They don't say it there but you also need to register if you pay anything that needs to go on a P11D.
Take advice
Good evening
You say you have a company but not by choice,
My advice would be that yes, you should register the company for PAYE. It is easier to operate future variations if you are registered anyway, but more to the point your liability depends on a varirty of issues and your personal circumstances so you need to discuss your circumstances with an expert to start you off on the right track.
Ask your friends/colleagues about accountants in your area and go to see a few to discuss how they can help you. Then choose the one you seem to be most in tune with - don't go for the cheapest quote as the one certainty is that you get what you pay for to a great degree. You will then start off on the right basis which will help in the long run.
My experience of new business people
They ask a lot of questions but there are 1,000's of questions that could be relevant. The answers you will get are in total isolation and don't help your overall understanding.
If you get an accountant they will tell you all you need to know in terms you understand and for about £1,000 per year they will prepare your accounts, tax and payroll efficiently and minimise your tax. After you get told what you need to know in a structured way you will find that you wont have many question.
umbrella
I'm guessing (perhaps wrongly) that you're a contractor, and your "employer" requires you to use your own ltd. With an income of £6000 per year, you'd be better off using an umbrella company, rather than your own limited company.
If you're not a contractor, then why not be self employed? There's anyway no tax or (much) NI at this level, so why complicate things for yourself?