How do I pay myself?

[locumdoc123]

Sorry - complete noob question. I have been working for my own Ltd company (sole director, sole employee), and in no rush to pay myself.

Obviously at some point I need to - probably once or twice a year will pay myself.

My question is - how-- so I know I can transfer money from my co a/c to my personal account, but...
1. What do I need to produce in the way of a payslip? (do I need to do this)
2. Do I need to pay NI now, or can it wait until the end of the tax year and accountant can sort it out?

I (think I) understand re maximising my tax-free bands, but really just worried re how I pay my NI?

(thanks in advance)

[Lance]

You really need an accountant.
Payroll submissions (if you use them, which you probably should, ask your accountant) need to be uploaded to HMRC using RTI. Your accountant will do this for you for a reasonable sum.

Dividends are another way to pay yourself but again you need an accountant .

It is possible to do all this without an accountant but if you have that knowledge you wouldn’t be asking the questions you have.

Get an accountant. Before you make an xpensive mistake.

[mudskipper]

Sorry - complete noob question. I have been working for my own Ltd company (sole director, sole employee), and in no rush to pay myself.

Obviously at some point I need to - probably once or twice a year will pay myself.

My question is - how-- so I know I can transfer money from my co a/c to my personal account, but...
1. What do I need to produce in the way of a payslip? (do I need to do this)
2. Do I need to pay NI now, or can it wait until the end of the tax year and accountant can sort it out?

I (think I) understand re maximising my tax-free bands, but really just worried re how I pay my NI?

(thanks in advance)

Agree with Lance - unless you know what you're doing, get an accountant now to hold your hand through the basics and set up payroll etc for you. Look for one who offers freeagent. From your handle, I'm guessing you're NHS - are you outside IR35? If not, you may want to consider an umbrella.


Read the newbie guides on the right --->

And download IPSE's free guide to freelancing.

[northernladuk]

As a locum what do believe your IR35 status to be?

[oilboil]

I do my own accounting as I have a pretty good knowledge of the necessary items to run a company, pay myself and stay on the right side of the law.

That being said when I have specific questions that stray outside of my knowledge I pay for some specialist advice (I know too many accountants); in all honesty I probably don't save much in a year doing it this - I just like being able to do it when I want and how I want so I do it myself.

I wouldn't advise anyone to do their own accounting - but if you really do understand it then there is no reason not too. But the OP questions suggest that isn't the case

If I was to get an accountant it would have to be someone I could physically go see and talk to; these online accountancy farms aren't what I would consider a true "trusted business advisor" how can they be they've not invested the time to get to know you or the business (I'm sure there are some good ones though)

[northernladuk]

That being said when I have specific questions that stray outside of my knowledge I pay for some specialist advice

If I was to get an accountant it would have to be someone I could physically go see and talk to; these online accountancy farms aren't what I would consider a true "trusted business advisor" how can they be they've not invested the time to get to know you or the business (I'm sure there are some good ones though)

But how can you get that from an accountant to whom you just rock up with 50 quid and ask him a question and off you go?

I do think you've got the wrong idea about what accountants do for a contractor, what's available and so on... but.. if that works for you then go for it.

[LondonManc]

I do my own accounting as I have a pretty good knowledge of the necessary items to run a company, pay myself and stay on the right side of the law.

That being said when I have specific questions that stray outside of my knowledge I pay for some specialist advice (I know too many accountants); in all honesty I probably don't save much in a year doing it this - I just like being able to do it when I want and how I want so I do it myself.

I wouldn't advise anyone to do their own accounting - but if you really do understand it then there is no reason not too. But the OP questions suggest that isn't the case

If I was to get an accountant it would have to be someone I could physically go see and talk to; these online accountancy farms aren't what I would consider a true "trusted business advisor" how can they be they've not invested the time to get to know you or the business (I'm sure there are some good ones though)

Mainly because they manage the accounts of many limited company contractors and have a great deal experience doing it.

[WTFH]

Sounds like Big 5 logic from oilboil if you ask me - try to do it yourself, then pay to get someone in to fix it up, but insist that the person to fix it isn't the best for the job instead choosing someone who will listen to you tell them how to do their job.
...and thinking that is a great idea, so trying to sell it to everyone else.

[Darren at Fox-Bartfield]

Accountants

Sorry - complete noob question. I have been working for my own Ltd company (sole director, sole employee), and in no rush to pay myself.

Obviously at some point I need to - probably once or twice a year will pay myself.

My question is - how-- so I know I can transfer money from my co a/c to my personal account, but...
1. What do I need to produce in the way of a payslip? (do I need to do this)
2. Do I need to pay NI now, or can it wait until the end of the tax year and accountant can sort it out?

I (think I) understand re maximising my tax-free bands, but really just worried re how I pay my NI?

(thanks in advance)

Nothing wrong with the noob questions but I'd suggest you get an accountant in place to run through this lot rather than wait until the year end. An accountant would keep you compliant as well as being on hand to answer these types of things should be addressed before the year end. Personally, I wouldn't look to medically diagnose myself and the same philosophy applies here, please seek professional advice.

[Maslins]

Nothing wrong with the boob questions...

Well, there is if it's in the accounting/legal forum...