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Ltd company directors salary

Ltd company directors salary

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I just started a ltd company, and I am thinking of paying myself a directors salary of around 700 GBP per month.

Does a directors salary need to be reported to HMRC monthly, or can it be done on a yearly basis.

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By David Ex
08th May 2022 21:08

Have a read of this. It applies equally to you:

https://www.accountingweb.co.uk/any-answers/limited-company-payroll-ques...

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By Hugo Fair
08th May 2022 21:37

"Does a directors salary need to be reported to HMRC monthly, or can it be done on a yearly basis" is the wrong question (even if you'd used the appropriate question-mark).

But each payment needs to be reported to HMRC 'by or before' the date of payment, so ... either "pay (yourself) a director's salary of around 700 GBP per month" and report that monthly, OR pay yourself annually (in month 12) and report that once p.a.

But there are lots of other things to get wrong if you don't know when to submit an EPS as well as the FPSs (and what/why needs reporting in both types) ... let alone how to handle statutory pay, paid holiday, AE pensions, etc - so best to appoint someone to handle this for you if you have no prior experience in this area.

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By MCV71
08th May 2022 21:50

Groundhog day. Why oh why oh why do people start up limited companies without taking advice.

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Replying to MCV71:
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By DKB-Sheffield
08th May 2022 22:25

As I said yesterday, on the Groundhog Day MKI post...

I have today changed my boiler without involving a gas engineer. I think I did it fine... just a couple of things I wasn't sure of! The flue part seemed to be excess to requirements, and some of the pipes seemed a bit loose. Still, it works so I'm sure all will be okay! Only time will tell!

Must say I'm feeling a bit sleepy now!!!

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Replying to MCV71:
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By David Ex
08th May 2022 22:26

MCV71 wrote:

Groundhog day. Why oh why oh why do people start up limited companies without taking advice.

The OP previously posted suggesting he/she had clients so presumably giving themselves advice:

https://www.accountingweb.co.uk/any-answers/wear-and-tear-allowance-7

“I am in profession and need to resubmit a personal tax return for a client.”

“The client forgot to disclose his rental income.”

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Replying to David Ex:
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By Hugo Fair
08th May 2022 22:54

You forgot to mention the final post on that thread:

By Red Leader
13th Jan 2021 11:03
"How long have you been doing this tax lark?"

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Replying to David Ex:
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By DKB-Sheffield
08th May 2022 23:22

David Ex wrote:

The OP previously posted suggesting he/she had clients so presumably giving themselves advice:

All the more worrying then!

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Replying to DKB-Sheffield:
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By David Ex
09th May 2022 01:57

DKB-Sheffield wrote:

David Ex wrote:

The OP previously posted suggesting he/she had clients so presumably giving themselves advice:

All the more worrying then!

Correct.

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