Sage instant payroll/accounts - advice please

[chris79]

I decided with all this MSC/PSC legislation going on to just "do it myself"...

I have a copy of sage instant accounts and sage instant payroll.

Does anyone here do this themselves? If so can someone please give me the basics of what I need to be doing in order to account for directors fee + dividends and expenses?

Also with my agency I've signed a self billing agreement which means that they raise the invoice on my behalf, does this affect anything?

cheers!

[Lewis]

Yes, I'm doing the same following MSC legislation (for a short while at least). I'm using the CD from the HMRC (the one you get when you register for PAYE) instead of Sage Payroll. It is all fairly easy, you just need to decide on a salary and then send off a cheque each month or quarter - all the info you need is on the CD. Am recording all expenses and paying myself back at the end of month. Am invoicing myself (but I'm sure I've read your agency thing is fine). Dividends just need some paperwork for you own records (meeting minutes and dividend declaration). Am going to get an accountant to do my end of year accounts and corporation tax return hopefully for around. I'm thinking about Sage Instant Accounting instead of my Excel spreadsheet, post again if you find it good. All the forms I have had to fill out to date (corporation tax, VAT regsitration, PAYE registration) have been fairly easy.

[Sockpuppet]

I use / have used both.

Instant Accounts is good. One of the better packages.

Payroll is OTT but as I have 3 people (dad + his mate are using me as a umbrella corp - which is nice all I take is the 3% I earn on the FRS....how generous of me) working through my Ltd its starting to become more and more worth it.

[chris79]

so whats the score with paying dividends? I can see from sage payroll that I can pay myself a wage, and it works out what to pay etc, then I just to a BACS transfer..

but to take the rest of the company profit as dividends, any ideas? Is there a procedure to follow anywhere on the net? Surely one of us here must have documented a step by step "idiots guide" to doing it.

[Lewis]

so whats the score with paying dividends? I can see from sage payroll that I can pay myself a wage, and it works out what to pay etc, then I just to a BACS transfer..

but to take the rest of the company profit as dividends, any ideas? Is there a procedure to follow anywhere on the net? Surely one of us here must have documented a step by step "idiots guide" to doing it.

You have to work out profits of company e.g. roughly ... invoices - expenses - salary - employers NI - VAT - corporation tax = profit. That gives you the dividend you can declare.

You should create two documents for your records. (1) Meeting minutes saying something like "Minutes of a meeting of the directors of the company YYY on DATE. The directors having taken all reasonable steps to ensure that the company has sufficient distributable reserves, proposed that, the company should pay a dividend of not more than £XX per A class share. IT WAS CONSIDERED THAT a dividend of not more than £XX per A class share be recommended." plus

(2) Tax vouchure saying something like "Tax Voucher: Shareholder BOB SMITH
Shareholding 1 A Share. Date XXX. Dividend details Interim dividend of £YYY per A share. Tax Credit £ZZZ (= YYY/9). Dividend £YYY You should keep this voucher as it will be accepted by the Inland Revenue as evidence of Tax Credit in respect of which you may be entitled to claim relief. " Then get secretary to sign.

But I'd advise you to investigate a bit more to be happy you know you have calculated the right amount and written the docs properly. You must be able to find something on the web. Hope that points you in the right direction...

[Foresight One]

Foresight One

Dear all

There are still compliant solutions out there for contractors working in the UK. If you are serious about looking for an advisor then please contact me by PM (chrism@foresightone.co.uk) and I would be happy to discuss various solutions based on your circumstances.

[Lewis]

Dear all

There are still compliant solutions out there for contractors working in the UK. If you are serious about looking for an advisor then please contact me by PM (chrism@foresightone.co.uk) and I would be happy to discuss various solutions based on your circumstances.