P46 questions

[ceeci]

We are 2 directors running a ltd company and are just setting up our payroll using HMRC approved software.

Personally, I am self-employed as well (working only a few hours per week as a childminder) and have no P45. I have a tax code for my self-employment - do I use this one again? I assume I should also tick box C under 'Personal Circumstances'?

The other director has not worked for years after being at home with children and also have no p45 or tax code. We will tick box A under 'Personal Cirucumstances'. Do we then use the emergency tax code?

We are planning to pay a very small salary each (within the tax allowance).

Thanks in advance,

Cecilie

 

[mikky_uk]

In my opinion, i dont think you can use thesame tax code.

Depending on the software you are using, it should automatically give you a tax code once the P46 has been entered onto the system.

In relations to yourself, the system is likely to issue you a BR tax code as you already have another job.

It would be Box C that you would tick under "Present circumstances" for yourself.

For the other director, it would be either Box A or B (Box A from the iformation you have given) and the tax code is likely to be 647L for the tax year 2009/10 which is also thesame (at present) for the tax year 2010/11.

The back of the P46 also gives you details regarding the tax code to use.

 

[elaine@cheapaccounting]

Are you self employed or employed as a child minder?

 

[ceeci]

Hi Elaine

I'm self-employed as a childminder (all childminders who work in their own home are).

Cecilie

 

[Merlion ABS]

I would suggest you both complete a P46 and tick box A. They will apply your Personal Allowance to the employment as a Director. With regards to the Tax code to use, Use the emergency tax code of 647L until a correct one is issued by the Inland Revenue.

With Regards to you Ceeci, I take it you aware that even though you wont pay tax via your employment from your Ltd Co. you may still pay tax on your self employment profits as they will be added together to give a total taxable income?

 

[ceeci]

Thanks for this.

Yes I'm aware my total income for both jobs will be taxable as a whole. My self-employment will only be a very small amount (around £500, as I'm stopping it in July, so will only affect part of the tax year).

Thanks for all your advice, it has been very helpful.

Regards,
C