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Good Morning folks
The time has come for my wife and I to extract profits from our Company
I want to Pay a Salary to Myself and my Wife just under the NI limit once a year
I am a Higher Rate Tax Payer my wife is a Lower rate tax payer
My wife works full time and claims her allowances via her employer
So I would need to deduct 20% Tax for my wife
and I would need to deduct my 40% Tax for myself
I have looked at The HMRC Pay roll and it looks ok
Or would I be better handing this task to the Company Accountant
If we are paid once a year at the end of March when do I send the Tax to the HMRC
Thanks in advance for your help
Learn Change and Adapt ?????
Just get the account to deal with it ,then if you get a paye inspection you have no worries
I agree. I just get my accountants to deal with all PAYE matters. They don't make any extra charge for this above my normal monthly payment and send me payslips each month and P60's at the end of the year.
Thank you Guys I will ask my Accountant to do this task
Have a good Saturday
Something to think about, if you have 2 classes of shares in your Ltd company your wife could take a higher dividend.
But with caution https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem4225
Director of Tax Peplows Limited
CTA ACA FCCA
Normally, a higher rate taxpayer who already has an employment source of income, will already have a tax code factoring in their personal allowance. As such, a D0 tax code could be implemented to tax all the additional income at the 40% rate.
In a similar fashion, a basic rate taxpayer who already has an employment source of income, will also already have a tax code factoring in their personal allowance. As such, a BR tax code could be implement to tax all the additional income at the 20% tax rate.
You can either use your accountant, or there is software out there which can help. HMRC have their own “Basic PAYE Tools” software for smaller employers, and also, there are useful Cloud solutions such as Brightpay and Payroo which offer free licences for small employers.
Hope that helps and best wishes,
RITA4Rent (Rental Income Tax Advisors)
Specialists in Landlord Taxation
Recommended tax advisors of the Residential Landlords Association
Follow us on Twitter @Rita4Rent
clients (at) rita4rent (dot) co (dot) uk
Can I ask a question please
Once the Salary has been paid Nett when is the payment due for the tax collected from the salary paid what is the time span
My monthly salaries are always paid 1st month and the PAYE is due 22nd.
That’s great thank you