Nic Payments - Director.

Shane-S · Jul 1, 2009

Hello

My brother is running his own company to which i said i will help out with the accounts. He will be getting paid an hourly rate for his work on site, and then a salary cut, perhaps quarterley payed.

Can all NIC he cumulates up till 31st March 2010, be paid at this time?

or will the NIC need to be payed more frequent?

With NIC i mean both employees contribution AND employers.

Any advice would be much appreciated.

David Griffiths · Jul 1, 2009

Why is he taking a salary? Has he not taken advice on more efficient extraction of funds using low salary and dividends?

Or does he think that he doesn't need professional advice and is doing it all himself, thinking that saves money?

elaine@cheapaccounting · Jul 1, 2009

Shane-S said:
Hello

My brother is running his own company to which i said i will help out with the accounts. He will be getting paid an hourly rate for his work on site, and then a salary cut, perhaps quarterley payed.

Can all NIC he cumulates up till 31st March 2010, be paid at this time?

or will the NIC need to be payed more frequent?

With NIC i mean both employees contribution AND employers.

Any advice would be much appreciated.

If he is taking a salary then the company may need to be registered as an employers, complete various returns, run a payroll etc - depends on level of pay etc. The payroll system will tell you how much tax and NI to pay and when.

As David said - not the most tax efficient approach! So you might want to suggest that he takes professional advice.

There are a number of reporting requirements for limited companies - are you dealing with them all?

Shane-S · Jul 1, 2009

he has recently set up a ltd company, i have download 12payroll.. will have a play tonight.

Just wanted to see if he can pay it all off, including income tax - at the end of the tax year.

elaine@cheapaccounting · Jul 1, 2009

Shane-S said:
he has recently set up a ltd company, i have download 12payroll.. will have a play tonight.

Just wanted to see if he can pay it all off, including income tax - at the end of the tax year.

depends on how much - but generally PAYE is paid each month to HMRC. If under £1500 a month you can pay quarterly.

Caution - unless there is a good reason to pay a salary I would NOT recommend this approach but would look at dividends.

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