question about PAYE

[mlc2009]

Hi All,

My accountant setup my LTD CO in november 2013, we have been trading since then. He said at time he would take care of PAYE, I have been withdrawing maximum salary from company, tax efficient

As im not an accountant, I realised today when reading about PAYE. I havent paid any?

I'm the director and only employee, any advice?

[Kenny@MyAccountantFriend]

Depends on the level of salary taken. If you have a tax efficient salary there may be no PAYE payable on what you have paid yourself.

It's difficult to say for sure without a lot more detail. Your accountant should have provided you with details of the salary and PAYE payable for you to check.

[mlc2009]

Depends on the level of salary taken. If you have a tax efficient salary there may be no PAYE payable on what you have paid yourself.

It's difficult to say for sure without a lot more detail. Your accountant should have provided you with details of the salary and PAYE payable for you to check.

well he seems like a good accountant, but maybe im panicking over nothing

the salary was £662 monthly, from my LTD company. He never mentioned anything about PAYE

[Kenny@MyAccountantFriend]

That salary would be below your personal tax free allowance of £10,000 and also below the NI threshold as such no PAYE or NIC would be payable, provided your on a standard tax code of 1000L.

[mlc2009]

That salary would be below your personal tax free allowance of £10,000 and also below the NI threshold as such no PAYE or NIC would be payable, provided your on a standard tax code of 1000L.

my tax code is 989L, my personal allowance is £10600 from this year..

so yeah, seems hes right after all

on the letter I got, it says outstanding debt restriction of -702, because I owe 140.40 arreas of class 2 NI contributions, strange as I never got that letter, typical HMRC

[Kenny@MyAccountantFriend]

Class 2 NIC implies your registered as self employed as opposed to being a director of a Ltd company.

Have you been self employed before or continue to be self employed now as the rules are changing around class 2 NIC and it will now be paid via self assessment as opposed to by direct debit for the 2015/16 tax year.

If you haven't or are no longer self employed a quick call to HMRC should fix this with them updating your records accordingly.

[mlc2009]

Class 2 NIC implies your registered as self employed as opposed to being a director of a Ltd company.

Have you been self employed before or continue to be self employed now as the rules are changing around class 2 NIC and it will now be paid via self assessment as opposed to by direct debit for the 2015/16 tax year.

If you haven't or are no longer self employed a quick call to HMRC should fix this with them updating your records accordingly.

Yes, I was self employed beforehand. I will call them and let them know

[Kenny@MyAccountantFriend]

If you let them know what day you ceased to be self employed they should backdate their records accordingly.

You will need you NI number or UTR when u call them to access your records.

[mlc2009]

If you let them know what day you ceased to be self employed they should backdate their records accordingly.

You will need you NI number or UTR when u call them to access your records.

many thanks for your help!

[jamesbrown]

If so, this is an outrage that someone can let this happen.

To offer another perspective, it's something of an "outrage" that someone can run a company without knowing the very basics. I suggest you do a lot more reading (see right ---->), because it's ultimately your responsibility to ensure that your company is meeting its legal and tax obligations.