HOW MUCH YOU CAN PAY YOURSELF FROM YOUR LTD COMPANY WITHOUT HAVING A PAYROLL SCHEME


If you have a company as a shareholder and director you would usually pay yourself a mixture of salary and dividends.

If though, for whatever reasons, you have not set up a payroll scheme up then you are still able pay yourself a small salary. Your company does not have to register with HMRC for payroll if it does not pay workers at an amount over what is referred to as the Lower Earnings Ltd. (LEL).

Every year the amount of the LEL changes, however for the current tax year 2017/ 2018 the current LEL is £113per week or £490 per month. Please contact one of The Your Tax Shop team for further details about this.

It should be noted that at this level you will NOT get National Insurance credits towards your state pension. This strategy is therefore not usually the best for the employed or for long term.

As a director, if you do register for PAYE during the year you may be able to bring your salary payments up to date. This is something you should discuss with your accountant to make sure that you have the most appropriate salary and dividends strategy for your business.

Register for payroll

If you do want to pay a salary at an amount over the LEL then you must register for PAYE with HMRC which means that you will have to file regular Real Time Information (RTI) reports.

You can register a PAYE scheme through Your Tax Shop in Tameside.

For more information on when to register with HMRC for payroll please contact Your Tax Shop at either the Mossley or Ashton office.

HOW MUCH YOU CAN PAY YOURSELF FROM YOUR LTD COMPANY WITHOUT HAVING A PAYROLL SCHEME


If you have a company as a shareholder and director you would usually pay yourself a mixture of salary and dividends.

If though, for whatever reasons, you have not set up a payroll scheme up then you are still able pay yourself a small salary. Your company does not have to register with HMRC for payroll if it does not pay workers at an amount over what is referred to as the Lower Earnings Ltd. (LEL).

Every year the amount of the LEL changes, however for the current tax year 2017/ 2018 the current LEL is £113per week or £490 per month. Please contact one of The Your Tax Shop team for further details about this.

It should be noted that at this level you will NOT get National Insurance credits towards your state pension. This strategy is therefore not usually the best for the employed or for long term.

As a director, if you do register for PAYE during the year you may be able to bring your salary payments up to date. This is something you should discuss with your accountant to make sure that you have the most appropriate salary and dividends strategy for your business.

Register for payroll

If you do want to pay a salary at an amount over the LEL then you must register for PAYE with HMRC which means that you will have to file regular Real Time Information (RTI) reports.

You can register a PAYE scheme through Your Tax Shop in Tameside.

For more information on when to register with HMRC for payroll please contact Your Tax Shop at either the Mossley or Ashton office.

HOW MUCH YOU CAN PAY YOURSELF FROM YOUR LTD COMPANY WITHOUT HAVING A PAYROLL SCHEME


If you have a company as a shareholder and director you would usually pay yourself a mixture of salary and dividends.

If though, for whatever reasons, you have not set up a payroll scheme up then you are still able pay yourself a small salary. Your company does not have to register with HMRC for payroll if it does not pay workers at an amount over what is referred to as the Lower Earnings Ltd. (LEL).

Every year the amount of the LEL changes, however for the current tax year 2017/ 2018 the current LEL is £113per week or £490 per month. Please contact one of The Your Tax Shop team for further details about this.

It should be noted that at this level you will NOT get National Insurance credits towards your state pension. This strategy is therefore not usually the best for the employed or for long term.

As a director, if you do register for PAYE during the year you may be able to bring your salary payments up to date. This is something you should discuss with your accountant to make sure that you have the most appropriate salary and dividends strategy for your business.

Register for payroll

If you do want to pay a salary at an amount over the LEL then you must register for PAYE with HMRC which means that you will have to file regular Real Time Information (RTI) reports.

You can register a PAYE scheme through Your Tax Shop in Tameside.

For more information on when to register with HMRC for payroll please contact Your Tax Shop at either the Mossley or Ashton office.