Director's PAYE

[TheMonkey]

You've missed a trick there - if you had paid her a small wage (just above the NIC threshold), it would probably have a zero net cost between your company and her, but she'd get SMP from your company, which you'd have been able to reclaim plus SMP compensation - the last one I did came to well over £1,000. Though she can probably claim a smaller amount via her self employment if she earns enough as has been paying NIC.

I really can't be bothered! I'm keeping things simple as possible so that they are:

a) manageable
b) accurate
c) least likely to fall down at a policy change.

[philip@wellwoodhoyle]

She's not an employee

You've missed a trick there - if you had paid her a small wage (just above the NIC threshold), it would probably have a zero net cost between your company and her, but she'd get SMP from your company, which you'd have been able to reclaim plus SMP compensation - the last one I did came to well over £1,000. Though she can probably claim a smaller amount via her self employment if she earns enough as has been paying NIC.

[TheMonkey]

She's not an employee (she has her own ebay venture!).

Mouth washed...

[meridian]

......I'm working contract primarily for flexibility as my wife is going to pop a baby in September so I can just "take some time off" witout worrying about paternity etc

If she's an employee of yours make sure you wangle some Statutory Maternity Pay, it's free cash for your company from Gordon.

We're not all in it for the cash

Wash your mouth out with soap!!!

[TheMonkey]

If you look at the PAYE calculator on the CD rom you will see that calculation for directors is covered. It's exactly as ASB has said, tax/NI is exactly the same rate for directors as for anyone else, you just have to average NI over the year rather than base it on each monthly payment.

That makes sense. I've installed the CDROM (yuck) and worked it out. Thanks for the recommendation.

With exception of a few fairly obscure rules on pensions and capital equipment PAYE for directors are the same as other employees. Quite agree about the bloodsucking accountants, carry on doing it yourself.

I've not got a pension and all the equipment is mine out of my own pocket so it should be straightforward.

Thank you for agreeing about the accountants. It's not that hard to do it yourself if you're not using every dodgy hack to get cash out (which I'm not). I'm working contract primarily for flexibility as my wife is going to pop a baby in September so I can just "take some time off" witout worrying about paternity etc (and I'm trying to flog the company off later as a "out of the box service provider").

We're not all in it for the cash

[xoggoth]

If you look at the PAYE calculator on the CD rom you will see that calculation for directors is covered. It's exactly as ASB has said, tax/NI is exactly the same rate for directors as for anyone else, you just have to average NI over the year rather than base it on each monthly payment.

With exception of a few fairly obscure rules on pensions and capital equipment PAYE for directors are the same as other employees. Quite agree about the bloodsucking accountants, carry on doing it yourself.

[TheMonkey]

asb is correct. Dont you have the employers pack with all those A4 cards in it ?

there used to ba a couple of pages giving this info specifically.

Also hmrc have a mail list for developers of paye/ni software. Get yourself on the list and download the back issues. that will give you all the rules and worked examples of owt complicated like.

The employers pack is mysteriously missing the PAYE for directors information. It says to phone up and ask them. When I phoned up, some glaswegian cow was most unhelpful

I've done nothing dodgy - in fact I've not hit the limit in any period so I've not hit a cut off so i'll just hold back and see if anyone says anything when the end of year gets filed.

I'm going to dissolve this company Jan next year anyway as I'm going back to permie scumdom as I should be able to land something nice like a architect job in Midlands / Leeds (rather than bloody London) - cross fingers.

[nobody here but us chicke]

ni

asb is correct. Dont you have the employers pack with all those A4 cards in it ?

there used to ba a couple of pages giving this info specifically.

Also hmrc have a mail list for developers of paye/ni software. Get yourself on the list and download the back issues. that will give you all the rules and worked examples of owt complicated like.

[ASB]

Now I read there are different regs for directors of Limited companies (like myself) but I can't find any relaible information on them. Am I in the tulip or have I managed to do things appropriately considering I've been playing by the book.

The PAYER rules are the same but the NI rules are slightly different. As a directory you effectively pay NI oon a cumulative basis (prevent the old trick of paying all salary in one go and going over the ceilings in that week and avoiding the NI).

If you pay yourself a regular equal salary it is unlikely to make any difference at all. Since you don't have an evil blood sucking bastard to help you I suggest you write to your tax office and 'fess up. They'll tell you if you owe anything. If it's current year it shouldn't be a problem anyway.

[DaveB]

Find yourself a bloodsucking bastard. From the sound of it you've been paying far more tax and NI than you needed to. Thousands of pounds worth if you've been doing this for a while.

Any decent blood sucking bastard will save you far more blood than they consume.

[Scaroth of the Jagaroth]

Am I in the tulip or have I managed to do things appropriately considering I've been playing by the book.

Without studying your accounts, you'd need a blood sucking bastard accountant to tell you that sort of thing.

[cojak]

I guess that's why I pay a blood-sucking bastard to to this kind of thing for me...

[TheMonkey]

Still can't get any straight info out of the HMRC for this.

I'm a director and I pay myself strictly through PAYE only. I do not take dividends at all as the company never makes a profit This is just because I want to run things simply and don't want an accountant as they are blood sucking bastards (plus I run my accounts using my own software system they don't want to touch albeit being pretty much standard). I do 50% contract work through agencies and 50% direct work such as web development and bespoke software.

I have been paying myself through PAYE as a standard employee since day one and have paid the NI contributions and tax appropriately.

Now I read there are different regs for directors of Limited companies (like myself) but I can't find any relaible information on them. Am I in the tulip or have I managed to do things appropriately considering I've been playing by the book.