Ltd company directors salary

Ltd company directors salary

Didn't find your answer?

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.

Replies (7)

Please login or register to join the discussion.

avatar
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...

Thanks (1)
avatar
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.

Thanks (2)