TAX and NIC

[Mustang]

I am waiting for my accountant to get back to me with the level of salary I should draw from my Company to suit my circumstances. I have also put to him a couple of questions that I thought I would post here to get some unbiased advice......!!

1) NIC from a personal and company point of view. Can this be paid in one lump sum at the end of the financial year like tax or do I have to pay it as I go just as I would if I was registered as self employed?

2) Is it more beneficial to get my accountant to handle my salary as PAYE, if do what does this entail.


I will let you know what he says!!

[fiddleabout]

All PAYE stuff is paid monthly but below certain levels you can pay quarterly. I forget what the levels are but if you are IR35 free you should be well inside - I certainly pay quarterly and I pay more than NMW salary as I also pay into a pension fund.

Most contractor accountants do PAYE for you as a atter of course. If you've gone with a local or high street accountant it will be down to what you agreed - many don't do it and still charge more than a specialist.

[Bradley]

Re:Payroll

A few points:

- you don't need to have any salary to pay into a stakeholder pension. You can make an annual contribution of £3600 gross or £2808 net of tax

- interest on unpaid PAYE/NIC does not start until the 19th April following the tax year in which the salary is paid

- if you're a director with no written contract of employment then you don't have to pay any salary at all. You could take all profits as dividends or split it with your wife

[planetit]

Re: Re:Payroll

If you choose to pay all your PAYE/NIC at the end of the year remember to send “Nil” payslips to the IR every month (or quarter if you’re on the quarterly scheme). Failure to do so will show up as a late payment. You will get reminders and ultimately this is one thing that will trigger a PAYE investigation.