First Payslip - PAYE Tax/NI Question..

[rapid]

Did some searching but still can't quite find the answer..

Just received my first payslip for July from MyCo through the accountant.

I've not worked in this tax year so far and my salary is 12k. So my monthly salary would be 12k/9 months left in the tax year which is 1333.33 per month. The gross pay and net pay on my slip are both 1333.33 (tax/ni are zero) and the accountant says I need to withdraw the net pay amount from MyCo bank account after each payslip is generated.. from checking on a salary calculator and confirmed by my accountant I will be expected to pay 885 in Tax/NI over the course of the year in quarterly chunks.

The accountant advised the quarterly payment to HMRC will come from MyCo bank account.. so I'm a bit confused.. surely if thats the case then my salary should be 12k minus 885 (Tax/NI) divided by 9 months so 1235 net pay per month?

Am I missing something obvious/stupid here?

[Contreras]

Did some searching but still can't quite find the answer..

Just received my first payslip for July from MyCo through the accountant.

I've not worked in this tax year so far and my salary is 12k. So my monthly salary would be 12k/9 months left in the tax year which is 1333.33 per month. The gross pay and net pay on my slip are both 1333.33 (tax/ni are zero) and the accountant says I need to withdraw the net pay amount from MyCo bank account after each payslip is generated.. from checking on a salary calculator and confirmed by my accountant I will be expected to pay 885 in Tax/NI over the course of the year in quarterly chunks.

The accountant advised the quarterly payment to HMRC will come from MyCo bank account.. so I'm a bit confused.. surely if thats the case then my salary should be 12k minus 885 (Tax/NI) divided by 9 months so 1235 net pay per month?

Am I missing something obvious/stupid here?

Probably (I haven't done the calcs) because £885 includes employers NI, which is effectively hidden from the employee but the company has to pay it anyway.

Ask your accountant to explain why you can't pay yourself at the threshold to avoid employers NI, it's usually more tax efficient that way.

[TheCyclingProgrammer]

Probably (I haven't done the calcs) because £885 includes employers NI, which is effectively hidden from the employee but the company has to pay it anyway.

Ask your accountant to explain why you can't pay yourself at the threshold to avoid employers NI, it's usually more tax efficient that way.

Don't forget there is the £2k allowance for employers NIC which I would hope OPs accountant is making use of, so there shouldn't be any employers NIC.

No employees NIC until the end of the year either as director's NIC is done cumulatively.

I'd have expected there to be some income tax due although perhaps not if OP has accumulated 3 months worth of personal allowance so far. Not entirely sure there.

I know salary levels have been debated on here before many times and personally I don't see the sense in paying yourself a salary in excess of the personal allowance, especially over 9 months instead of 12. Even if you took the view that £12k is the most appropriate annual salary, then surely it would make sense to pay only £9k for the first year in OPs case. Salary level should ultimately be OPs decision in any case.