Hi , I have a small limited company and for the last few years have been paying my salaries in the first 3 months (about 3-4k each of those 3 months - I'm paid around or below the personal allowance for the year) and zero EPS's thereafter to save on making a payment from the company bank account and creating payslips each month (more often than i need or want to). I've set my payroll to monthly as advised is standard and HMRC appear not to allow annual payroll now anyway. This means the software calculates my tax due as if i were paid the same 4k amout every month of the year, and i am due refunds at the end of the year. I'm now using HMRC Basic Payroll Tools (BPT) and theres an option to pay Biannually or Annually, the ''help'' comment says :
Pay frequency -
Confirm the pay frequency (pay period) that applies to this payment. For example, if this pay covers one week, you should select 'Weekly'.The pay frequency that applies to most of their payments is not relevant here.
Which I would take as meaning I can set this to Biannually one month, and Quarterly the next two, and set my pay accordingly. Is this correct, can I change it for the relevant month? It then seems to calculate the tax due as if the Biannual payment were for 6 months pay and Quarterly for 3 months each, which is what i want. Any isses with doing this , and would HMRC be ok with it? Ta