Director Salary question

[ASB]

Thank you every one for sharing your views.

As mentioned its a recently incorporated new business which has not started trading yet so i have not hired the services of an accountant. I will hire accountant in near future although i am a professionally qualified accountant with major in Management Accountancy and business decision making but as i am not from UK therefore i have no idea of UK taxation and statutory requirements.

I am new in UK and have never been employed in UK, i will take salary from my company but that will be within minimum threshold of NI. So my understanding is that my company will pay me salary but will not register with HMRC as PAYE and there will be no tax deductions or NI deductions. secondly i as the employee will only be liable to file a self assessment return and that i assume will be after my financial year ends on 5th April 2014.

Now i assume that i can claim expenses related to company like car mileage, travelling expenses, calling expenses from the company which i will pay to perform my duties as the director of the company. Is my understanding correct.

Thanks

Repeating myself. Due to the way expenses are treated these are benefits. This mandates registration for paye in my view.

it's no big deal. Couple of annual forms that's all.

[malvolio]

Thank you every one for sharing your views.

As mentioned its a recently incorporated new business which has not started trading yet so i have not hired the services of an accountant. I will hire accountant in near future although i am a professionally qualified accountant with major in Management Accountancy and business decision making but as i am not from UK therefore i have no idea of UK taxation and statutory requirements.

I am new in UK and have never been employed in UK, i will take salary from my company but that will be within minimum threshold of NI. So my understanding is that my company will pay me salary but will not register with HMRC as PAYE and there will be no tax deductions or NI deductions. secondly i as the employee will only be liable to file a self assessment return and that i assume will be after my financial year ends on 5th April 2014.

Now i assume that i can claim expenses related to company like car mileage, travelling expenses, calling expenses from the company which i will pay to perforrm my duties as the director of the company. Is my understanding correct.

Thanks

Sorry, but which bit of "read the guides" do you not understand? All your questions are fully answered in them, we are not about to write it all out for you, And you need a UK accountant no matter how qualified you are since clearly you have no understanding of UK corporate law.

HTH...

[Clare@InTouch]

Repeating myself. Due to the way expenses are treated these are benefits. This mandates registration for paye in my view.

it's no big deal. Couple of annual forms that's all.

^ This. It's also important to understand that there's a difference between P11d reportable expenses and non-P11d expenses, like mileage.

You've mentioned a tax return too, which you don't have to do because you're an employee but because you're a director and will be in receipt of untaxed income in the form of dividends.

The financial year end of the company has no connection with the personal tax year, which is the one that ends on 05th April. Your company year end, unless you've changed it, will default to the end of the month plus one year after you incorporated.

I believe the limit for not registering for a PAYE scheme is actually lower than the minimum NI limit, and there are several minimum NI limits depending on the class you're talking about, so worth doing some more reading there.

[ASB]

and there are several minimum NI limits depending on the class you're talking about, so worth doing some more reading there.

The words hmrc use are:-

"you're paying them at or above the National Insurance Lower Earnings Limit"

So it seems reasonable to assume 109/week. Though of course things can happen later in a year which may mean registration should have happened earlier.

Personally if an employer doesn't want to register for whatever reason I would have thought it sensible to ring up HMRC, explain thier specific situation and ask. Then note the answer and call reference. At least this has some chance of avoiding penalties etc later on should it be the wrong decision was made.