Help Setting Up PAYE

[Skiny]

Hi,

I'm setting up PAYE for the very first time and I'm unsure of a few questions when adding myself as an employee.

Just some basic background:
I am the sole director of a limited company that I recently set up. No other staff.
I intend to pay a wage of £758 per month
I was previously self-employed, before turning the business into a limited company.
I'm using the Inland Revenue's Basic PAYE Tools program.


My questions are:

1.) What difference, if any, does the National Insurance calculation method make?
It gives the choice of:

Director's cumulative method, or​

Normal employee method.​

2.) It asks for information setting up an employee. As I was self-employed previously, is it correct to put myself as:

"New starter, without P45"?​

3.) Are there any pros/cons to pay frequency? If I set it to quarterly, other than being paid quarterly, does that mean I won't have to run PAYE so frequently?

4.) It asks for my tax code. How do I find this?

5.) It asks: "Is this tax code being operated on a week 1/month 1 basis?" What does this mean exactly?

6.) It asks for my "National Insurance category letter". How can I find this?


Any help, with any of the questions, would be greatly appreciated!! ?

 

[Scalloway]

1.) What difference, if any, does the National Insurance calculation method make?
It gives the choice of:
Director's cumulative method, orNormal employee method.

Director's cumulative method means that NI is calculated at the end of the year, rather than taken off monthly as a normal empl;oyees NI

2 Yes

4. As a self employed person you probably wion't have one. It is only issued to people on PAYE.

5.) It asks: "Is this tax code being operated on a week 1/month 1 basis?" What does this mean exactly?

Is tax calculated cumulatively or is calculated each payday without reference to previous deductions.

6. Probably you will be letter A but more info here

National Insurance rates and categories

Class 1 National Insurance (NI) contribution rates for tax year 2022 to 2023, what NI category letters mean.

www.gov.uk

Is your company accountant helping with this?

 

[Skiny]

Thank you very much for the reply and your help.

And to answer your question, yeah I do have an accountant helping. Just it was out of hours on the day that I posted it and was hoping to have finished it that evening.