I have a new Ltd Co client who in ther first year has made around £1,000 and taken all of the profit as drawings. There is no payroll set up, one director and no employees. Do we need to set up a payroll for the Director to take wages of less than the LEL or can this be done without a payroll?
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Bit late to worry about what's happened in the past. What are their plans 'going forward'?
What do you mean by "a payroll"?
If you mean register with HMRC for a PAYE scheme and the submit online PAYE RTI returns at least monthly, the answer is No, provided that:
- the director has no other job or pension, and
- he never takes a salary of £490 or more in any one month.