Registering for PAYE mid year

[kodo]

Hi all....

I've just set up my first Ltd company and have a question regarding PAYE. I believe the most tax efficient way is to register for PAYE and pay below the 7K threshold and the then the rest in dividends. However, I've set up the the company mid tax year and have already earned well over my tax allowance ( about 45K)

My question is: should I register for PAYE and pay myself pro-rata for the next three months (1/12 * 7K each month) or just pay myself dividends. In short, have I lost the benefit of the usual minimum payment via PAYE and dividends.

Thanks in advance

Kodo

[Sockpuppet]

I've just set up my first Ltd company and have a question regarding PAYE. I believe the most tax efficient way is to register for PAYE and pay below the 7K threshold and the then the rest in dividends. However, I've set up the the company mid tax year and have already earned well over my tax allowance ( about 45K)

My question is: should I register for PAYE and pay myself pro-rata for the next three months (1/12 * 7K each month) or just pay myself dividends. In short, have I lost the benefit of the usual minimum payment via PAYE and dividends.

Register anyway as its makes life easy. You can always just send nil returns for this year. Or use your P45 and pay yourself £1 at the end of March triggers a refund of all the tax you've overpaid (do the the way the tables work).

No point paying yourself anything via PAYE as you've already made over the thresholds. Might not even be worth paying yourself DIVs as in the 40% bracket the divs are taxed at a higher rate - do the sums then decide.

You've not lost anything. You've used your tax free allowance already which is all the £7k plus divs does.

[VectraMan]

I don't know how it makes it easier; it's just more paperwork sooner. I wouldn't bother, and just register in April.

No point paying extra PAYE as SP says. It's the year figure that counts, not the individual months, and you've already been paid way more than the ~£7K you need to acheive for the year.

[psychocandy]

Hi all....

I've just set up my first Ltd company and have a question regarding PAYE. I believe the most tax efficient way is to register for PAYE and pay below the 7K threshold and the then the rest in dividends. However, I've set up the the company mid tax year and have already earned well over my tax allowance ( about 45K)

My question is: should I register for PAYE and pay myself pro-rata for the next three months (1/12 * 7K each month) or just pay myself dividends. In short, have I lost the benefit of the usual minimum payment via PAYE and dividends.

Thanks in advance

Kodo

Same as me. I registered anyway but pay no salary this year. Theres no point if you've already earned over 7K.

I'd consider paying no dividends this year either if you could since any you pay are all going to be at upper tax rate now anyway. Leave it till next year if you can. Or chuck a shedload into a SIPP or something instead if you dont need the money immediately.

Also, next year consider making partner share holder if they dont earn much.

Next year. PAYE £7K and dividends up to higher rate is my plan.

[kodo]

Many thanks for advice

Hi all

All the advice and time taken to respond is much appreciated. I guess I won't register and I won't pay dividends this year. I'll register from beginning of April

Cheers and thanks once again...

Kodo