LTD company - Employee payment advise???

[everfor]

You mean pay them £5K without informing the tax man?

Yes you can do this, but you'll probably end up in jail.

I am newbie on this field, i am trying to find out the legal way and procedure how commission will paid to employee?... I don' t want break the law or hide from taxman..

[everfor]

Yes, you can pay £5k into their personal account.

Since they are your employee, you would record this £5k bonus on their payslip, and pay the appropriate additional tax and NI to HMRC. If you have already paid them £5k, you would pay this from your company funds.

Good luck with the new business.

Thanks for the reply.. Please elaborate the additional tax term? Is it corporation tax ? I guess corporation tax paid on the net profit and this £5k is sale commission, comes under expenses right?

[TheCyclingProgrammer]

Thanks for the reply.. Please elaborate the additional tax term? Is it corporation tax ? I guess corporation tax paid on the net profit and this £5k is sale commission, comes under expenses right?

For your co, the £5k you pay the employee is an expense, as is any employers NIC on top.

For the employee, the £5k is income and they pay income tax and employees NIC and this is deducted through your payroll system.

[DiscoStu]

Thanks for the reply.. Please elaborate the additional tax term? Is it corporation tax ? I guess corporation tax paid on the net profit and this £5k is sale commission, comes under expenses right?

You say you've already set this company up, in that case I suggest you appoint an accountant. Quickly.

[Sausage Surprise]

Sounds like a Bob plan....

I agree