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  • Tax

    Payroll for PAYE

    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

    DL

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    Learn Change and Adapt ?????

    Hi DL,

    Just get the account to deal with it ,then if you get a paye inspection you have no worries

    Kr

    A

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    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.

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    Thank you Guys I will ask my Accountant to do this task

    Have a good Saturday

    DL

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    Learn Change and Adapt ?????


    Something to think about, if you have 2 classes of shares in your Ltd company your wife could take a higher dividend.

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    But with caution https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem4225


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    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA


    Hi DL

    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

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    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

    http://www.rita4rent.co.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

    Thanks DL


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    Learn Change and Adapt ?????


    Hi DL

    My monthly salaries are always paid 1st month and the PAYE is due 22nd.

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    That’s great thank you

    dl

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    Learn Change and Adapt ?????