PAYEE

[definitionofself]

Hey Guys

First time poster. I've been contracting a couple of years and went LTD in May, I setup the company myself and have been self employed before so naturally have done my own returns etc. The only thing I have left to do is setup the PAYEE. This has lead me to this forum after seeking the answer to a number of questions and after a couple of weeks of mulling them over I thought I'd just ask

Firstly do any of you do your own accounts and file your own returns? My world is quite simple, I do short term contracts with very basic travel expenses so it feels like a better thing to do if I can get beyond the complexity of PAYEE. Am I being underestimating this?

Secondly i have read paying myself 7-8k per year and taking the rest in dividends is a standard practice. How do I actually go about doing this? Information seems to be in transition now there is a new version of PAYEE.

Thanks in advance for your replies

Andy

[Clare@InTouch]

PAYE will require you to file with HMRC under RTI - Real Time Information. You can do that online or use a software package. Often the latter is easier as HMRC are not know for making their software easy to use or understand. You'll need to register for PAYE first, which you can do by calling HMRC or completing an online form on their website.

A dividend is simply a transfer to yourself, with a voucher completed and retained.

The question of what is tax efficient for you is another matter, as you need to consider all sources of income. What's good for someone else may not suit you.

[northernladuk]

Secondly i have read paying myself 7-8k per year and taking the rest in dividends is a standard practice. How do I actually go about doing this? Information seems to be in transition now there is a new version of PAYEE.

You get an accountant. Simples.

[GazCol]

Hey Guys

First time poster. I've been contracting a couple of years and went LTD in May, I setup the company myself and have been self employed before so naturally have done my own returns etc. The only thing I have left to do is setup the PAYEE. This has lead me to this forum after seeking the answer to a number of questions and after a couple of weeks of mulling them over I thought I'd just ask

Firstly do any of you do your own accounts and file your own returns? My world is quite simple, I do short term contracts with very basic travel expenses so it feels like a better thing to do if I can get beyond the complexity of PAYEE. Am I being underestimating this?

Secondly i have read paying myself 7-8k per year and taking the rest in dividends is a standard practice. How do I actually go about doing this? Information seems to be in transition now there is a new version of PAYEE.

Thanks in advance for your replies

Andy

If you have to ask simple questions about the most efficient way to pay yourself I would, if in your position, just get an accountant. It might cost your business, but you'll, as an individual, find your earnings better off as a result of engaging somebody that knows what they're doing.

[Project Monkey]

You get an accountant. Simples.

...and you would recommend SJD if the OP were to ask.

[northernladuk]

...and you would recommend SJD if the OP were to ask.

I would point him to my recommend an accountant thread which makes clear who I am with but lists all the accountants that have been recommended in other threads.

Bearing in mind also a helpful accountant who is also one of the big players has taken the time to answer his question I would suggest it wouldn't be a bad idea for him to try them first.

You fail at being a smart arse.

[Craig at Nixon Williams]

I've been contracting a couple of years and went LTD in May, I setup the company myself and have been self employed before so naturally have done my own returns etc.

Firstly do any of you do your own accounts and file your own returns? My world is quite simple, I do short term contracts with very basic travel expenses so it feels like a better thing to do if I can get beyond the complexity of PAYEE. Am I being underestimating this?

Most of the people on this forum will be in the same position and will still use an accountant - the money saved due to being fully compliant with HMRC (avoiding penalties etc) as well as advice on how to be tax efficient will be worth more than the fees that you pay!

Craig

[Project Monkey]

I would point him to my recommend an accountant thread which makes clear who I am with but lists all the accountants that have been recommended in other threads.

Bearing in mind also a helpful accountant who is also one of the big players has taken the time to answer his question I would suggest it wouldn't be a bad idea for him to try them first.

You fail at being a smart arse.

You certainly don't fail at being predictable.

[amcdonald]

You get an accountant. Simples.

It's not always simples, I had real grief getting them to agree to doing monthly PAYE returns

They just seem to want to push you into make one annual payroll run

[northernladuk]

It's not always simples, I had real grief getting them to agree to doing monthly PAYE returns

They just seem to want to push you into make one annual payroll run

Really? I thought they had stopped that or something?