I have taken over a few companies from another accountant and all of them have directors salaries of around £500-£700 per month and none of these are operating a payroll. The figure is going on their self assessments returns though. These are all companies that have no other staff (well a couple have wifes wages but thats a whole other issue).
I am going to advise that they have a payroll set up and RTI submitted each month so that they at least get their contributions towards pension etc.
However, one of them told me that he was told that by putting the wages on his tax return gives him the pension record. I'm pretty sure this is inaccurate but before I plough ahead, I would appreciate confirmation and peoples thoughts on this.