Self assessment or PAYE scheme?

Self assessment or PAYE scheme?

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Hi there

I have an issue regarding my tax which I would like some advice on. My issue is as follows:

I started a retail limited company. I've spent the year forming the company and getting it ready for launch. I haven't had any income from it yet and the company only has 2 directors involved and no other employees.

Do I need to run a PAYE scheme to manage the directors tax or do I just do a personal self assessment tax return?

I understand the tax date is approaching fast and I need make a decision. Do I need to even do a tax return if I haven't had any income from it?

Look forward to your answers.

Thanks

Paul

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Euan's picture
By Euan MacLennan
18th Jan 2012 10:55

Find an accountant

If the company has not paid any salaries at all, it does not need a PAYE scheme and would only need one if it had paid salaries above the NI Lower Earnings Limit (£5,304 in 2011/12) or to someone who has a main job elsewhere.

If you have had no income, there is nothing to put on a personal tax return, but if one has been issued to you, you must complete it and submit it.

The best advice is to go and talk to a local accountant.  You will need one to prepare the company's accounts in the correct format and to file company tax returns with the Revenue.  There are many other issues to be covered, which you can discuss face to face.

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