Salary payment advice

[Moley]

Hi!

In the financial year 2008/09 I started doing my own accounts and realise that I should have paid myself a salary for about £500 around August 2009 but I didn't. I then found out that if I paid myself about £5,000 salary I could avoid paying corporation tax on my net profit! Thus I have lost out £1,100 to HMRC!

I want to send back my CT600, company P&L, balance sheets, etc to HMRC in April 2010 with a corporation tax payment for the period 2008/09.

Can I still pay myself a salary now and put this in my year end 2008/09 accounts?

I'm asking because HMRC wrote to me a few months back (even though I had moved address a year ago and HMRC also got my address wrong somehow) to ask why I had not paid national insurance during April to July 2009. I wrote back to HMRC stating "Nil" payment for national insurance payment becuase I did not pay myself a salary.

Any advice appreciated! I did use an accountancy fom but they cost me over £1,000 pa plus VAT so decided to do my own tax returns which has been fine so far.

I;m thinking to hiring an accountant again so does anyone know of a good, low cost accountant?

Thanks,

Moley

[NotAllThere]

I've edited your title. Basic netiquette - what's urgent for you isn't for us. Nor should you imply that your post is more important than anyone elses.

Hi!

In the financial year 2008/09 I started doing my own accounts... I have lost out £1,100 to HMRC!... I did use an accountancy fom but they cost me over £1,000 pa plus VAT so decided to do my own tax returns which has been fine so far.

I dunno, I just feel there's some connection to be made there.

I;m thinking to hiring an accountant again so does anyone know of a good, low cost accountant?

You can have up to one of those attributes, but not both.

btw - once you've done your books, that's it. You've declared what your company did. And a director signed it off as true.

[QwertyBerty]

Hi!
Can I still pay myself a salary now and put this in my year end 2008/09 accounts?

You can pay yourself a salary for 2008/9 but I imagine it would have to go in your current set of accounts and the PAYE against 2010/11.

QB.

[Alan @ BroomeAffinity]

so decided to do my own tax returns which has been fine so far.

Not really though, eh, otherwise you won't have made this error.

If you haven't already signed off your accounts, you MIGHT get away with declaring £5k or so of your dividends as salary. Bit dodgy though as the dividend vouchers you have issued would then be wrong. You did prepare divi vouchers right?

[Vallah]

Have you filed your accounts at Companies House yet?

If not just put the salary through your accounts, and leave the net wage, PAYE and NI as a creditor. Pay these asap to clear the creditors. Notify HMRC that you've mistakenly not paid the PAYE and NI for the period - as long as the penalties are less than the CT you've paid, you'll be better off.