First time paying income tax, when and where do I pay it?

[LeeT]

Hi folks,

I've finally been able to pay myself enough to hit the tax threshold this month. I have someone else manage my payroll and they have created my latest Payslip. I have already been paying NIC so I know how to do that but regarding income tax, do I need to pay the tax deduction monthly and who do I pay it too?

Many thanks for reading,

Lee

 

[Daybooks]

You pay the tax and national insurances together; thus the tax is paid to the same account and references as the national insurances. If you have a payroll provider they should be able to advise you everything you need to know. If you are the sole director and only employee on the PAYE scheme you will not be eligible for the employer’s allowance but you may be eligible to pay quarterly rather than monthly.

Use your Gateway Account to check the amounts are as expected and to confirm the payments are received and properly allocated.

 

[LeeT]

Ok, thanks for the help.

 

[MyAccountantOnline]

Hi folks,

I've finally been able to pay myself enough to hit the tax threshold this month. I have someone else manage my payroll and they have created my latest Payslip. I have already been paying NIC so I know how to do that but regarding income tax, do I need to pay the tax deduction monthly and who do I pay it too?

Many thanks for reading,

Lee

You pay both together same time same place.

Have a read here https://www.gov.uk/pay-paye-tax

 

[LeeT]

Hi again folks,

So I went through to https://www.tax.service.gov.uk/pay/ to make a payment. It asks me "What period are you paying employers’ PAYE for? Quarterly or Monthly?"

I selected monthly as it's just 1 month I need to pay for, then it gives me a selection box with 13 set date options starting with "6 August 2023 to 5 September 2023 (month 5)" and so on.

None of these dates match the same time period as my wage slip was issued. Should I pick the nearest date range? I'm a bit confused.

Thanks for reading,

Lee

 

[LeeT]

The person who does my wage slips has contacted me and pointed out they already provide me this information. I should have known this already as I used it to pay my NI bill about a month ago but I somehow forgot. So much has been happening it felt like a distant memory!

 

[MyAccountantOnline]

Hi again folks,

So I went through to https://www.tax.service.gov.uk/pay/ to make a payment. It asks me "What period are you paying employers’ PAYE for? Quarterly or Monthly?"

I selected monthly as it's just 1 month I need to pay for, then it gives me a selection box with 13 set date options starting with "6 August 2023 to 5 September 2023 (month 5)" and so on.

None of these dates match the same time period as my wage slip was issued. Should I pick the nearest date range? I'm a bit confused.

Thanks for reading,

Lee

It sounds like you've got it sorted now but it's the pay received in the tax month which runs from the 6th to the 5th, so for example if your salary was paid on 30 June that falls in the period 6 June to 5 July which is tax month 3.

 

[LeeT]

Thanks for clarifying this.