PAYE tax to HMRC frequency

[ASB]

Thanks for the info, but for a Director receiving a nominal salary, do I need to pay quarterly or can I just pay annually?

See reply number 2.

Edit: perhaps it wasn't absolutely crystal.

- If the tax/ni due is NIL then you can pay nil annually (if you ask)
- If the tax/ni due is < a certain amount which you can find on the IR website (about 1000 I think) then you can pay quarterly
- Else pay monthly.

I guess it depends on your own definition of nominal.

[Bigbird]

The OP was correct, if you call or write to your LOCAL office (the one that deals with your PAYE scheme) you can be put on annual payment if you are a director-only company even if tax is due.

This is because traditionally a lot of directors didn't take a regular salary out of their company, they would make irregular drawings which their accountants would then gross up at the end of the year.

This dates back to waaay before the advent of IR35.

[ASB]

This is because traditionally a lot of directors didn't take a regular salary out of their company, they would make irregular drawings which their accountants would then gross up at the end of the year.

True, but then they have an annual pay period.

The irregular drawings are loans which should be posted to the directors current account. There is then only one salary payment which covers it.

That is a perfectly acceptable way of dealing with it (notwithstanding potential BIK issues if the directors account goes overdrawn).

[elainec100]

The position on monthly or quarterly payment is as follows:

Employers with a monthly total to pay over of less than £1500 (tax, NI ees and ers) can pay quarterly.

If you are paying a nominal salary I think you would probably fall under the £1500 so pay quarterly.

Hope this helps

[Jog On]

I'm doing quarterly on a salary of about £5.5k