Tax on deemed salary

**boredsenseless** · 19 April 2006, 08:30

Originally posted by PerlOfWisdom

When is the tax on deemed salary supposed to be paid?

Today (although if you have a PAYE scheme and pay via a recognised electronic method you have until 22nd)

Those dates are for cleared funds though not receipt of cheque etc...

**malvolio** · 19 April 2006, 08:32

It's employee and Employer PAYE and NICs, so you pay it at the same time as you pay yourself you r deemed salary - monthly or quarterly is usual. What does your accountant advise?

**DaveB** · 19 April 2006, 08:40

19th of the month following the paydate. So yes, today for last months NI and PAYE.

I usually do it all at the same time - pay cheque, Divi and taxman.

**ASB** · 19 April 2006, 09:04

It may well be that you are unable to know the deemed salary by the due date for PAYE - 19th April.

In this case you should pay an estimate and aim to finalise with the annual return 19th May. Interest will be due on any underpayment.

http://www.hmrc.gov.uk/guidance/cwg2-chapter4.pdf

**PerlOfWisdom** · 19 April 2006, 10:39

Thanks

Originally posted by malvolio

What does your accountant advise?

I reminded my accountant on the 6th but not heard anything from him yet.

**Denny** · 19 April 2006, 11:26

Whoops, wrong thread.

**malvolio** · 19 April 2006, 15:41

Originally posted by PerlOfWisdom

Thanks

I reminded my accountant on the 6th but not heard anything from him yet.

I suggest you suggest to your accountant that you're looking for a new one then. You pay him to answer questions, remember, otherwise what use is he? Fail to pay something around the right amount and it's penalties and interest, so if all else fails, get a cheque in the post together with the IR Yellow payslip thingy for the period to date - you do have one of them I hope?? As ASB said, it doesn't have to be completely accurate, you can correct it later.

And why do I get the horrible feeling you haven't paid anything yet...

**boredsenseless** · 20 April 2006, 10:13

Originally posted by malvolio

I suggest you suggest to your accountant that you're looking for a new one then. You pay him to answer questions, remember, otherwise what use is he? Fail to pay something around the right amount and it's penalties and interest, so if all else fails, get a cheque in the post together with the IR Yellow payslip thingy for the period to date - you do have one of them I hope?? As ASB said, it doesn't have to be completely accurate, you can correct it later.

And why do I get the horrible feeling you haven't paid anything yet...

I have the same feeling.

I would put a cheque in for a generous estimate of the amount you owe, you'll get any surplus back but you will be in sh1t if you underestimate.

On a final note :

If your accountant doesn't do this for you then get shot it's the most important part of their service to you!

Tax on deemed salary