Urgent: I paid myself too much salary !

[radish2008]

I'm a bit confused. Why are you having to pay £2300 tax on a salary of £12k? Surely you're taxed ON £2300?

"If the salary for 13/14 is £12K net then this will be a gross salary of £13,499. The company’s PAYE/NI bill to pay in April 2014 will be £2,300 comprising £810 tax and £1,490 total national insurance (employee’s + employer’s NI)."

[ASB]

So, basically you paid yourself 1000 month net. There was nothing submitted to hmrc??

If thos is what happened I would rather imagine it was actually a salary of 9000 odd. The difference being loans which would have been journalised to the directors accoutn. Then cleared either by repayment or subsequent dividend.

At leasr thats what it looks what it might hsve been. Based on what you describe I dont see why your accountants seem so certain it was all salary.

[Wanderer]

I think that because of the fact I should have been notifying HMRC of salary payments through RTI (no RTI submission have been made) then I would have to make backdated submissions and that is where the complications would be.

I don't see what the problem is, if it wasn't declared on RTI then it's a director's loan so just put it down as that.

If you pay off your director's loan in full by the last day of your company's Corporation Tax accounting period then you don't need to tell HMRC about the loan on your Company Tax Return so no problem... If the loan is over £5k then you should pay interest on it (4%) to avoid the BIK but remember that the interest is paid back to you minus Corp Tax so the interest rate is effectively about 1%.

[Craig@Clarity]

If the loan is over £5k then you should pay interest on it (4%)

Just an FYI and heads up etc etc. The rate drops to 3.25% from April. HM Revenue & Customs: Beneficial loan arrangements - official rates

[northernladuk]

Just an FYI and heads up etc etc. The rate drops to 3.25% from April. HM Revenue & Customs: Beneficial loan arrangements - official rates

A good example of what accountants keep on top of in the background that many people don't see when complaining about cost. That gem could save people some good money.

Now get Clare a nice cup of tea..

[DirtyDog]

Just an FYI and heads up etc etc. The rate drops to 3.25% from April. HM Revenue & Customs: Beneficial loan arrangements - official rates

And the threshold goes up to £10k

[DirtyDog]

Now get Clare a nice cup of tea..

Claire

[Clare@InTouch]

Claire

Where's the dislike button?

[Craig@Clarity]

A good example of what accountants keep on top of in the background that many people don't see when complaining about cost. That gem could save people some good money.

Now get Clare a nice cup of tea..

Shame there is not dislike button on here!!! You'll have to do with a like instead. Now get the round in!