Employed as director in my company (new business)

[Rajinder]

Hi,

Thanks for all the help on all the other posts. So I have managed to get my company registered with companies house, and I start trading under my company tomorrow.

I need to start withdrawing wages every month. I intend to withdraw 476 pounds a month, so I will be within my personal allowance and avoid paying NI. Then at the end of the year will be paid dividends.

What do I need to do as an individual to let IR know that I am employed by my company, is there any paper work to send off to obtain a tax code (647l I am assuming), and is there any paper work to fill out on behalf of my company as an employer.

Thanks

 

[Truemanbrown]

Hi,

Thanks for all the help on all the other posts. So I have managed to get my company registered with companies house, and I start trading under my company tomorrow.

I need to start withdrawing wages every month. I intend to withdraw 476 pounds a month, so I will be within my personal allowance and avoid paying NI. Then at the end of the year will be paid dividends.

What do I need to do as an individual to let IR know that I am employed by my company, is there any paper work to send off to obtain a tax code (647l I am assuming), and is there any paper work to fill out on behalf of my company as an employer.

Thanks

Firstly, have you registered for a payroll scheme with the Inland Revenue. If not, then register online using the link below:-

https://online.hmrc.gov.uk/shortfor...ttp://www.hmrc.gov.uk/employers/what-next.htm

Once, you have registered the company, you then have two choices:-

a. if you have a valid Form P45 for 2010/11, you can send in a part of the Form to the Inland Revenue giving full details of the company's PAYE scheme. Please ensure that use the details on the Form P45 (i.e. pay to date, tax to date and PAYE code) to calculate the PAYE from when you commenced employment with your company. If you are paying yourself a wage of £476.25 a month, you may find that you will be due a refund of PAYE. You can apply to the Inland Revenue to fund this refund or wait until your complete and submit Form P35 for 2010/11;
b. if you do not have a valid P45 for 2010/11, then you must complete and submit the Form P46 to the Inland Revenue.

Please note that you must file the Form P35 online, so please ensure that you register online with the Inland Revenue.

http://www.hmrc.gov.uk/online/new.htm

 

[Williams lester]

Once registered for PAYE. it's worth looking at a payroll package (such as 12Pay, www.12pay.co.uk) as you can use this to file the year end returns and will probably find it much easier that using the HMRC supplied software.

You may also want to look at paying dividends more than once a year (depending on when your company year end is), to take advantage of personal tax allowances in each tax year. Your accountant should be able to advise you on this.