Paying Salary

[Sockpuppet]

Well try this then.

Collect £500pcm PAYE/NIC from your employees. Half way through the year you are filing nil returns (to pay at the end of they year) they investigate you and find that you are keeping the money but intended to pay it at the end of the year.

I bet everyone who fiddles PAYE "intends" to pay it.

SImply put dont do it. Not unless you like the jail free life.

[where did my id go?]

Why so ?

It applies to anyone who earns anything on PAYE I thought. Nothing said about dividends etc. Or is the 19th april for NI but not tax?

I know there is the directors scheme originally to prevent abuse re large irregular payments and the cap.

I've used that scheme and Ive used the 'normal'scheme - if you are only paying yourself a nominal (say £1K/month) that still gets paye due.

[Gonzo]

I thought that PAYE was only overdue as of 19th April the next tax year.

course you might get looked at if you do that.

That is if you are inside IR35 which you really shouldn't be.

[where did my id go?]

I thought that PAYE was only overdue as of 19th April the next tax year.

course you might get looked at if you do that.

[mjshrimpton]

No.

"But yes HMRC man...I was going to pay I was just paying a bit each month".

They probably would see if as failure to pay NIC contributions = prison time.

Cheers - I knew there would be a logical reason. Well as logical as it can be...

[Sockpuppet]

No.

This is becuase if you paid all your salary upfront your tax would be so high (as its calculated pro rata) then you would overpay on the tax and spend the next 11 months reclaiming it.

That is unless you are paying yourself min wage in which case you could pay yourself £5225 and not have to worry about the NIC.

However AFAIK spreading your NIC payments over the year would look bad if you had an investigation.

"But yes HMRC man...I was going to pay I was just paying a bit each month".

They probably would see if as failure to pay NIC contributions = prison time.

[mjshrimpton]

Dim question probably, but hey ho, I can take the abuse.

Can you pay all your set salary upfront at the start of the year, and then pay your PAYE payments quarterly as normal?

Or put another way does your salary payment need to go out nicely on the same day of every month for Hector to be happy when he comes to see the books?

I can see the offset morgage getting fat.