My first payday

[ittony]

Hi all. It's my first payday today, hooray. I've put in all all the company and personal details on the Employer CD-ROM and I've entered the pay details for this month. There's no tax or NI to pay yet and at my current rate there won't be any by the end of the financial year, so I'll continue to return nil yellow slips quarterly.

So, my question is. Now what? Can I just write myself a cheque now? I can't help feeling there something missing from the process. Do I need to produce some sort of payslip? Do I need to inform anyone? There's no communication with the revenue from the CD so effectively all I've done is make the first entries on a local P11 summary document, HMRC won't know I'm paying this salary until the end of the year, is that right? They obviously already know I'm a director but what if I were doing this for some other new employee, in absence of some other process, the revenue wouldn't even know he was employed until the end of the year, which doesn't seem right. Am I missing something?

Cheers all, T.

[Bluebird]

Hi all. It's my first payday today, hooray. I've put in all all the company and personal details on the Employer CD-ROM and I've entered the pay details for this month. There's no tax or NI to pay yet and at my current rate there won't be any by the end of the financial year, so I'll continue to return nil yellow slips quarterly.

So, my question is. Now what? Can I just write myself a cheque now? I can't help feeling there something missing from the process. Do I need to produce some sort of payslip? Do I need to inform anyone? There's no communication with the revenue from the CD so effectively all I've done is make the first entries on a local P11 summary document, HMRC won't know I'm paying this salary until the end of the year, is that right? They obviously already know I'm a director but what if I were doing this for some other new employee, in absence of some other process, the revenue wouldn't even know he was employed until the end of the year, which doesn't seem right. Am I missing something?

Cheers all, T.

Quarterly VAT
Quarterly PAYE Payments

and some other form not P60 or P45 but something for a new employee joining...

[PAG]

Hi all. It's my first payday today, hooray. I've put in all all the company and personal details on the Employer CD-ROM and I've entered the pay details for this month. There's no tax or NI to pay yet and at my current rate there won't be any by the end of the financial year, so I'll continue to return nil yellow slips quarterly.

So, my question is. Now what? Can I just write myself a cheque now? I can't help feeling there something missing from the process. Do I need to produce some sort of payslip? Do I need to inform anyone? There's no communication with the revenue from the CD so effectively all I've done is make the first entries on a local P11 summary document, HMRC won't know I'm paying this salary until the end of the year, is that right? They obviously already know I'm a director but what if I were doing this for some other new employee, in absence of some other process, the revenue wouldn't even know he was employed until the end of the year, which doesn't seem right. Am I missing something?

Cheers all, T.

Your Yellow slips are to tell Revenue how much salary you have paid yourself. So you can't just fill them NIL and at the same time you pay a salary to yourself.

[ittony]

Quarterly VAT
Quarterly PAYE Payments

and some other form not P60 or P45 but something for a new employee joining...

Not VAT registered.

Under PAYE thresholds.

New employee form would make sense, but assume I don't need one as a director, so, anything else for me do do no other than write a cheque?

[ittony]

Your Yellow slips are to tell Revenue how much salary you have paid yourself. So you can't just fill them NIL and at the same time you pay a salary to yourself.

What? The yellow slips have an amount due box, and as there is no amount due I fail to see what other than NIL I should be filling them in with...?

[FiveTimes]

Not VAT registered.

Under PAYE thresholds.

New employee form would make sense, but assume I don't need one as a director, so, anything else for me do do no other than write a cheque?

I take it you don't have an accountant ???

[PAG]

What? The yellow slips have an amount due box, and as there is no amount due I fail to see what other than NIL I should be filling them in with...?

If you pay yourself salary, your company needs to deduct employee NI and employers NI .. these amounts should be returned to Revenue on quarterly basis (I think)

[ittony]

I take it you don't have an accountant ???

You take it right.

[ittony]

If you pay yourself salary, your company needs to deduct employee NI and employers NI .. these amounts should be returned to Revenue on quarterly basis (I think)

As I said in the same sentence where I mentioned yellow slips, at my current salary there's no tax or NI to pay.

[Bluebird]

Not VAT registered.

Under PAYE thresholds.

New employee form would make sense, but assume I don't need one as a director, so, anything else for me do do no other than write a cheque?

If you are making payments to an employee you need to make a quarterly return.
If you are under the VAT threashold - don't forget above a certain turnover it's compulsary - then you can't charge VAT either.
If you are paying the balance as dividends, you need to ensure you have Company Minutes & Tax Vouchers to back up the dividend paid.

Oh, and probably get an accountant as it can't really be as easy as that can it ?