Employee Salary and NI Payment

[Nishant]

Hello Friends,

I am going to start contracting in IT. However as it is yet to start I want to understand how would I pay employees ( my wife as company secretory and myself as Director ) in the limited company I will start. Do I have to send NI numbers of employees to HMRC? Also how to pay the NI on it? Does the NI need to be paid on monthly basis?

[stek]

Hello Friends,

I am going to start contracting in IT. However as it is yet to start I want to understand how would I pay employees ( my wife as company secretory and myself as Director ) in the limited company I will start. Do I have to send NI numbers of employees to HMRC? Also how to pay the NI on it? Does the NI need to be paid on monthly basis?

Get. An. Accountant.

You're already in over your head at this early stage....

[Lance]

Step 1. Start your business.
Step 2. Get a/some customers.
Step 3. Get money into the business.
Step 4. Pay yourself.

You've not done step 1, and you're asking on here about step 4. Your priorities are wrong.
As Stek says. Get an accountant.

[northernladyuk]

Hello Friends,

I am going to start contracting in IT. However as it is yet to start I want to understand how would I pay employees ( my wife as company secretory and myself as Director ) in the limited company I will start. Do I have to send NI numbers of employees to HMRC? Also how to pay the NI on it? Does the NI need to be paid on monthly basis?

Read some newbie guides. Contractoruk has one. SJD used to do one too. Get an accountant - one who specialises in contractors. There is a sticky at the top of this page for recommendations.

If you do not get an accountant, you are entering a world of pain. Do not use any scheme that is offering 80% to 90% retention.

[northernladuk]

You get an accountant.

It's too early to start the employee pedantry so will let the OP engage an accountant and do some basic research before we get in to top bantz.

[Nishant]

Hello All,

I am already trading and in business. I need to do these things myself as my company is yet to become profitable. In a couple of months, when I break even and become profitable, I will have the luxury of keeping an accountant.

But until then I want to do all this myself. So your advise will be much appreciated.

Thanks

[mattfx]

OP Sounds like you need to be on an accountancy forum rather than a contractor forum to be honest. Most of us here have accountants I think. Some don't, but most do.

[BrilloPad]

Try QDOS. They are very good at this sort of stuff.

If you don't pay an accountant, you might not pay HMRC too. You are going to end up in jail if you are not careful.

[SueEllen]

Hello All,

I am already trading and in business. I need to do these things myself as my company is yet to become profitable. In a couple of months, when I break even and become profitable, I will have the luxury of keeping an accountant.

But until then I want to do all this myself. So your advise will be much appreciated.

Thanks

Then you will be in a complete mess.

Things like insurance and VAT need sorting from day 1.

[northernladyuk]

Hello All,

I am already trading and in business. I need to do these things myself as my company is yet to become profitable. In a couple of months, when I break even and become profitable, I will have the luxury of keeping an accountant.

But until then I want to do all this myself. So your advise will be much appreciated.

Thanks

They don't worry about paying yourself or your spouse until you have an accountant. If you can afford to pay salary, you can afford to pay an accountant.

If you are making sales, you must get your head around VAT immediately. Focus on teat first.