Hi
Myself & a friend have recently set up a limited company as we have started to trade, buying and selling vintage items.
We have named ourselves as the 2 sole directors and have both put some capital into the business. However, we are not expecting to make much profit, if any in the first few months and every sale proceeds is just invested back into the business so we will not be taking a salary etc as have income from other employment.
My question is however, when should we register for PAYE? I did not think we needed to up until before we start processing any regular salary payments if this is how we intend to take money from the business as there will be no information to provide and would not have any tax, NI etc to pay over.
Would appreciate it if someone could confirm if this is something we should have done straightaway but whether we have to inform HMRC that no payments have been made or whether we can register once we know when we will be taking a salary or a dividend if possible?
Many thanks
Replies (7)
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I would only register when the company statered paying salaries as once registered HMRC will expect monthly RTI filings.
Get an accountant and make sure you aware, up front, of what you should be doing and when
"we will not be taking a salary etc as have income from other employment."
So why would you register for paye then? Maybe you like paying too much tax. Maybe your other income doesn't use up all your personal allowance.
Or maybe you think dividends are reported via paye.
In any event its clear you don't know enough to correctly run the company so my answer to your question is, ask a paid professional accountant.
As other replies say - the easy answer is you register as soon as you start taking salaries (and then have to file monthly to HMRC even if to declare no salary that month).
The real question is when should you start taking salaries and that will depend on your other income, whether there are profits to take dividends and so on. Engaging a local accountant would be recommended.