quick question about where do I keep my PAYE/NICs

[2uk]

PAY/E NIC,

I pay myself 1000 pounds / month. I got my first 1000 pounds pay slip and the accountant instructed me to pay these 1000 into my personal account. This is contrary to my expectation which is that I would retain part of these money into my biz account to pay later PAYE/NICs. ?

What am I missing ?

[minstrel]

Is it £1000 gross or £1000 net?

If its £1000 gross then you need to deduct PAYE and NI before transferring the net amount to personal account.

If its £1000 net then transfer the £1000 and your accountant should work out the PAYE and NI on top of that.

Note if you haven't earnt anything else this tax year, then it's possible that PAYE and NI could be nil, in which case it would be £1000 gross and £1000 net.

What figures do you have on your payslip? Are there deductions shown?

[Euro-commuter]

PAY/E NIC,

I pay myself 1000 pounds / month. I got my first 1000 pounds pay slip and the accountant instructed me to pay these 1000 into my personal account. This is contrary to my expectation which is that I would retain part of these money into my biz account to pay later PAYE/NICs. ?

What am I missing ?

An acceptable accountant?

If your company wants to pay you 1000 pounds gross salary, it (the company) needs to pay the following:

1. Employer's NIC to HMRC (this is 12.8% of 1000 and is on top of the )
2. Employee's NIC to HMRC (this must be calculated)
3. PAYE to HMRC (this must be calculated).
4. the net salary to you. This is = 1000.00 - (no 2) - (no3).

so the total the company pays out will be 1012.80, and you personally will receive less than 1000.00, because you only receive the net salary.

[2uk]

Is it £1000 gross or £1000 net?

If its £1000 gross then you need to deduct PAYE and NI before transferring the net amount to personal account.

If its £1000 net then transfer the £1000 and your accountant should work out the PAYE and NI on top of that.

Note if you haven't earnt anything else this tax year, then it's possible that PAYE and NI could be nil, in which case it would be £1000 gross and £1000 net.

What figures do you have on your payslip? Are there deductions shown?

I got that. I told the accountant to pay myself 1000 – and they understood net while I meant gross.

That minimum salary of 10800 /annum we should pay ourselves - is that 10800 net or 10800 gross we should pay ?

[minstrel]

I got that. I told the accountant to pay myself 1000 – and they understood net while I meant gross.

That minimum salary of 10800 /annum we should pay ourselves - is that 10800 net or 10800 gross we should pay ?

It's £10,800 gross.

Works out about £750 per month net.

[2uk]

It's £10,800 gross.

Works out about £750 per month net.

Thanks mate.