I paid £641.33 salary in April and May. I want to pay aprox. £23,000 in June. This will (probably) be my last salary payment for my 2013/2014 year, though I will remain a director for the rest of the year.
My accountant is telling me that tax and NI on the £23,000 has to be calculated using a monthly earnings period, meaning total tax bill will be about £13000. I, using a yearly earnings period, had calculated it should be about £7300.
The accountant has said that since they specified a monthly "payroll frequency" at the beginning of the year, it is a HMRC requirement (and not a limitation in their procedures or software) that they continue to use a monthly period, they cannot change this.
I'm still not convinced that the law requires me to deduct £13,000. Any accountants care to comment?
My accountant is telling me that tax and NI on the £23,000 has to be calculated using a monthly earnings period, meaning total tax bill will be about £13000. I, using a yearly earnings period, had calculated it should be about £7300.
The accountant has said that since they specified a monthly "payroll frequency" at the beginning of the year, it is a HMRC requirement (and not a limitation in their procedures or software) that they continue to use a monthly period, they cannot change this.
I'm still not convinced that the law requires me to deduct £13,000. Any accountants care to comment?
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