PAYE & Director's Salary

[Era]

Good afternoon everyone,

I am in a little bit of struggle. I have set up my brand in 2019, and I have been the only employer so far. Few days ago I decided to hire my first two employees, and before doing that I registered for PAYE as an Employer.
The problem is, in January 2021 I paid to myself £6950 as Director Salary - I simply paid the money from the business account to my personal ( please understand I did not have a true understanding of payroll)
Now I find myself in trouble, as I would like to inform HMRC that I paid myself that much, but I do not know how to do it, as when I try to file my payslip through my payroll software it says I will incur a fine for late submission.

What should I do?

 

[Dave Boatman]

Depending upon when your year end was you may be able to treat the first payment as a director loan and now pay yourself the same amount which can then be used to repay the director loan. This doesn’t need any cash to move around it would be done through journal entries.
Going forward get an accountant

 

[Era]

Thank you!

Depending upon when your year end was you may be able to treat the first payment as a director loan and now pay yourself the same amount which can then be used to repay the director loan. This doesn’t need any cash to move around it would be done through journal entries.
Going forward get an accountant

 

[NicoJ]

If you had no other PAYE income in the year to 5 April then you wouldn't have needed a PAYE scheme so you don't need to do anything.

Once a scheme has been set up you will need to report any payments to you going forward.

 

[STDFR33]

If you had no other PAYE income in the year to 5 April then you wouldn't have needed a PAYE scheme so you don't need to do anything.

Once a scheme has been set up you will need to report any payments to you going forward.

Unless they had a job in addition to their business.

 

[NicoJ]

Unless they had a job in addition to their business.

Covered in the first sentence of my post.

 

[STDFR33]

Covered in the first sentence of my post.

Sorry didn’t see that. Clearly too much wine last night!

 

[DWS]

I had always been under the impression that if an employee (including directors) were paid above the LEL then a payrol scheme needed to be set up and reported through RTI, is this incorrect?

 

[Scalloway]

If the employee or director wants to be credited with NI contributions then their salary needs to be reported through RTI. I don't think it is compulsory though if they don't have any taxable employment income.

 

[DWS]

HMRC state that you do not need to register a PAYE scheme if none of your employees are paid more than £120.00 per week

https://www.gov.uk/paye-for-employers

 

[Newchodge]

HMRC state that you do not need to register a PAYE scheme if none of your employees are paid more than £120.00 per week

https://www.gov.uk/paye-for-employers

And all of them can tick box A on the new starter's list.

 

[oz07]

Do you have basic paye tools? I prefer it to any fancy software

 

[DontAsk]

Do you have basic paye tools?/QUOTE]

If you mean HMRC BPT, it seems to be a dirty word around here! I use it and get on just fine.