Salary calc for first timer

[dty]

Hi,

I've just moved from perm to contract and am setting up PAYE for my company and I need some advice on salary, please.

My P45 already shows more than £10,000 earnings YTD, so I'm not sure if I should simply not pay myself salary for the rest of the year?

I'd like to take full Childcare Vouchers as a salary addition. My tax code is currently 717T.

I'm also not sure of the NMW rules, esp in relation to the Childcare Vouchers.

Thanks,

dty

[stek]

No NMW for directirs

[mudskipper]

Hi,

I've just moved from perm to contract and am setting up PAYE for my company and I need some advice on salary, please.

My P45 already shows more than £10,000 earnings YTD, so I'm not sure if I should simply not pay myself salary for the rest of the year?

I'd like to take full Childcare Vouchers as a salary addition. My tax code is currently 717T.

I'm also not sure of the NMW rules, esp in relation to the Childcare Vouchers.

Thanks,

dty

Your accountant should be able to advise. If you haven't got one, you almost certainly should get one - at least for your first year or two.

[dty]

Your accountant should be able to advise. If you haven't got one, you almost certainly should get one - at least for your first year or two.

I do have one. And I have asked the question. But the answer thus far has simply been their generic "£10,000" blurb with no consideration for my personal circumstances.

[vwdan]

What makes you think that the £10k figure won't suit you?

[dty]

What makes you think that the £10k figure won't suit you?

Nothing in itself, but I have already earned over £10k this year. Hence the question.

[vwdan]

Nothing in itself, but I have already earned over £10k this year. Hence the question.

No - your company has earned over £10k. The normal model is that you extract the rest as dividends - not many contractors are living on £10k, but most of them will have something around that number as their salary.

[dty]

No - your company has earned over £10k. The normal model is that you extract the rest as dividends - not many contractors are living on £10k, but most of them will have something around that number as their salary.

I understand this is only my 4th post, and I don't mean to appear rude, but did you read my question? *I* have earned over £10k from my previous permanent role since April this year. According to my P45.

[vwdan]

I understand this is only my 4th post, and I don't mean to appear rude, but did you read my question? *I* have earned over £10k from my previous permanent role since April this year. According to my P45.

Sorry, no, you're right - I'm on the wrong end of some very long days. I'd completely missed that line, so sorry about that

[dty]

Sorry, no, you're right - I'm on the wrong end of some very long days. I'd completely missed that line, so sorry about that

No worries Sorry for the slightly arsey reply.