If you have an employee and they are paid more than £4,992/annum then you should apply for a PAYE reference and run a payroll, keep records and send regular submissions to HMRC. You must also pay PAYE and National Insurance ,due by certain deadlines.
If you are the sole Director of a Limited Company and not paying yourself a salary, then there is no requirement to do this.
Let’s suppose you are a Director and Shareholder in your Limited Company, paying yourself a basic salary and taking some dividends, then you will also be paying Corporation Tax. There are ways you can reduce your Corporation Tax but still benefit yourself, such as having the company pay in to a pension scheme for you. There are limits and you don’t want to pay more in than you have profits before tax if you have taken dividends but please talk to a Financial Advisor about which pension scheme and then to either of us about how much and when!
Call –Tim: 07875 410466
Call – Nic: 07985 645087
