Reply to: My first payday

[NotAllThere]

Just book entries and bank statements. ( No cheques either - bank to bank transfer ). The audit trail is clear. That's what matters. Of course, you do have to yearly issue a P60 for each employee.

NotAllThere

[ittony]

In over 10 years of contracting, I've never produced a payslip.

Really? Cool. I'll buy into that. Is there any kind of documentary evidence of your payment other than an entry in the books and an item on the bank statement?

You're running your own payroll I assume?

[NotAllThere]

In over 10 years of contracting, I've never produced a payslip.

NotAllThere

[ittony]

no I wasn't missing the point - perhaps our views of BIG differ !!!

seriously, the threashold is just over £5k from what I remember, we're halfway through the FY, so my guess is your cheque can't be much more than £2.5k ?

If it is, then perhaps we're missing something - if not then it sounds like you're ok to me......

....but then I'm not an accountant or an HMRC inspector.

It's for £653, which after six months of zero, means a lot to me, and my bank manager.

[Bluebird]

Yes, you're missing the fact that as I haven't had anything coming into my personal account for over six months, the little cheque feels pretty big to me.

no I wasn't missing the point - perhaps our views of BIG differ !!!

seriously, the threashold is just over £5k from what I remember, we're halfway through the FY, so my guess is your cheque can't be much more than £2.5k ?

If it is, then perhaps we're missing something - if not then it sounds like you're ok to me......

....but then I'm not an accountant or an HMRC inspector.

[ittony]

but if you're noy paying yourself dividend, and you're only paying salary - which you state is not enough to make you eligible for Income Tax or NI - then your business a/c might be big but your cheque is not - unless I'm missing something ?

Yes, you're missing the fact that as I haven't had anything coming into my personal account for over six months, the little cheque feels pretty big to me.

[ittony]

There's something on HMRC's website that let's you tell them there's no tax and NI to pay, so you don't have to arse around with yellow slips. And for that matter, what's with the cheque?

I get "payslips" from the accountant, but all it is a breakdown of pay, NI and tax. You could knock something up in seconds with excel or the like, or a hand written note would probably suffice.

Yes, when I say return a yellow slip I actually mean use the online equivalent, here's the link by the way:

http://www.hmrc.gov.uk/howtopay/paye_nil.htm

Good point about the cheque though.

Yes, I might go for the hand written payslip option, good idea.

[ittony]

I believe there is some legal requirement for a payslip to be produced ? Does the CDROM give you an option to produce a payslip ? If so just print one off.

It doesn't appear to, which seems a strange omission.

[Bluebird]

Well, after having been contracting for six months with all these paid invoices building up in my business account but without knowing how to pay myself any of it, this little cheque is burning a big hole I can tell you.

but if you're noy paying yourself dividend, and you're only paying salary - which you state is not enough to make you eligible for Income Tax or NI - then your business a/c might be big but your cheque is not - unless I'm missing something ?

[ittony]

If the cheque you have that burning a hole is from your own company, and one which only covers your salary, I presume it not burning too big a hole if it keeps you under IT & NI contribution rates

Well, after having been contracting for six months with all these paid invoices building up in my business account but without knowing how to pay myself any of it, this little cheque is burning a big hole I can tell you.

[VectraMan]

There's something on HMRC's website that let's you tell them there's no tax and NI to pay, so you don't have to arse around with yellow slips. And for that matter, what's with the cheque?

I get "payslips" from the accountant, but all it is a breakdown of pay, NI and tax. You could knock something up in seconds with excel or the like, or a hand written note would probably suffice.

[Bluebird]

Thanks FT.

I wonder if a payslip is a requirement for just for the convenience of the employee...?

Anyone? I've got my first paycheque buring a hole in my pocket, is it safe for me to go and pay it in before the month is up...

The payslip is just for the employee, a nil return from your yellow book is all that HMRC need.

If you have been "paid" by cheque from an agency / client it needs to go through your business account, then you can transfer whatever wages you are paying into a personal account or draw cash to that value and pay yourself cash.

If the cheque you have that burning a hole is from your own company, and one which only covers your salary, I presume it not burning too big a hole if it keeps you under IT & NI contribution rates

[FiveTimes]

Thanks FT.

I wonder if a payslip is a requirement for just for the convenience of the employee...?

Anyone? I've got my first paycheque buring a hole in my pocket, is it safe for me to go and pay it in before the month is up...

I believe there is some legal requirement for a payslip to be produced ? Does the CDROM give you an option to produce a payslip ? If so just print one off.

[ittony]

Only if the amount is going to exceed the limits. From what the op has said I take it they will be paying a minimal salary ~5/6K, but as we are midway through the year the amount of salary they could earn won't be subject to tax/ni.

This happened to myself, and my accountant just returned nil, and sent a payslip out every month for £600. I then schedule a payment into my current account.
Regarding the remaining funds, transfer some dosh into a deposit account for CT then you will be able to make a divi payment for the rest, but then again others might disagree

Thanks FT.

I wonder if a payslip is a requirement for just for the convenience of the employee...?

Anyone? I've got my first paycheque buring a hole in my pocket, is it safe for me to go and pay it in before the month is up...

[ittony]

If you are making payments to an employee you need to make a quarterly return.

If you are paying the balance as dividends, you need to ensure you have Company Minutes & Tax Vouchers to back up the dividend paid.

So yes, I will continue making quarterly nil returns.

I won't be paying any dividend for a while yet but realise that I'll have to type up the minutes and tax voucher when that time comes, I suppose it's all that business which makes me think there's something missing in what I've done to draw some salary. Some sort of payslip perhaps?

Oh, and probably get an accountant as it can't really be as easy as that can it ?

I don't know. Seems pretty simple so far, I'm looking for something more complicated to it but no-one seems to have come up with anything so far...