PAYE tax to HMRC frequency

[Jog On]

I'm doing quarterly on a salary of about £5.5k

[elainec100]

The position on monthly or quarterly payment is as follows:

Employers with a monthly total to pay over of less than £1500 (tax, NI ees and ers) can pay quarterly.

If you are paying a nominal salary I think you would probably fall under the £1500 so pay quarterly.

Hope this helps

[ASB]

This is because traditionally a lot of directors didn't take a regular salary out of their company, they would make irregular drawings which their accountants would then gross up at the end of the year.

True, but then they have an annual pay period.

The irregular drawings are loans which should be posted to the directors current account. There is then only one salary payment which covers it.

That is a perfectly acceptable way of dealing with it (notwithstanding potential BIK issues if the directors account goes overdrawn).

[Bigbird]

The OP was correct, if you call or write to your LOCAL office (the one that deals with your PAYE scheme) you can be put on annual payment if you are a director-only company even if tax is due.

This is because traditionally a lot of directors didn't take a regular salary out of their company, they would make irregular drawings which their accountants would then gross up at the end of the year.

This dates back to waaay before the advent of IR35.

[ASB]

Thanks for the info, but for a Director receiving a nominal salary, do I need to pay quarterly or can I just pay annually?

See reply number 2.

Edit: perhaps it wasn't absolutely crystal.

- If the tax/ni due is NIL then you can pay nil annually (if you ask)
- If the tax/ni due is < a certain amount which you can find on the IR website (about 1000 I think) then you can pay quarterly
- Else pay monthly.

I guess it depends on your own definition of nominal.

[VectraMan]

If you pay some tax (even just a little) there was an electronic filing rebate being offered which could net £800 over three years. I've got mine !

I don't think it's available anymore, but worth checking.

I got £250 last year, and £150 this year.

The annual thing is perhaps confused with dividends? Also, if you really really are IR35 caught, then isn't that tax due anually?

[beermeister]

Thanks for the info, but for a Director receiving a nominal salary, do I need to pay quarterly or can I just pay annually?

[oraclesmith]

If you pay some tax (even just a little) there was an electronic filing rebate being offered which could net £800 over three years. I've got mine !

I don't think it's available anymore, but worth checking.

[ASB]

If nil payslip you can just send them an email, details on their site somewhere.

Sure, but you still actually have to do it. Move to annual and you don't even need to bother doing that.

[xoggoth]

If nil payslip you can just send them an email, details on their site somewhere.

[ASB]

So if you haven't anything to pay, you can elect not to pay it once a year?

Correct.

Actually it's not quite as stupid as it sounds. It saves you having to send back nil payslips (for thoese who are organised). Or waiting until you get the red final reminder and ringing the accounts office (which is permenantly engaged) and telling them it's a nil payment.

[malvolio]

It is either monthly or quarterly depending upon the amount. Check HMRC web site.

It is possible to do annually if the actual paye bill is zero.

So if you haven't anything to pay, you can elect not to pay it once a year?

[css_jay99]

I thought that for PAYE its 19th of the month following payment ?

I myself have searched via HMRC site and cant seem to find any info on this.

could do with earning the extra interest in company account !

css_jay99

[ASB]

Could someone please let me know what frequency I need to pay to HMRC the tax on my salary? I understand that for small business, it’s quarterly, but I’ve heard from a colleague that for a Director of a Ltd Company, it’s annually.

It is either monthly or quarterly depending upon the amount. Check HMRC web site.

It is possible to do annually if the actual paye bill is zero.

[beermeister]

Could someone please let me know what frequency I need to pay to HMRC the tax on my salary? I understand that for small business, it’s quarterly, but I’ve heard from a colleague that for a Director of a Ltd Company, it’s annually.