Help please

[bubbly123]

Hello

I got my entrepreneur visa last month and since then I have not got my salary for myself yet. I am trying to register for payee for employers which is the first think I need to do before drawing salary but how do I do it. Am I right do I have to register for payee for employers before drawing salary?

Please help with this because my company is active from three months and I have not received any salary will this be a problem in extension?

[Momi]

I got my visa 2 and half month ago. Money is coming from clients every month but I'm not taking salary. Now I'm looking for a good accountant.

[entrepreneur123]

yes its better to get registered as employer with hmrc as director on paye system. However, there is no requirements to take salary every month, its up to you as director to take salary or not. I myself did not took any salary in first 5 months as i was not making much money. However, if you are taking salary through paye scheme then it might be good thing for example if home office will randomly check hmrc data that ur national insurance number will come up as director employee of your own company if u were taking some salary through paye.

Hello

I got my entrepreneur visa last month and since then I have not got my salary for myself yet. I am trying to register for payee for employers which is the first think I need to do before drawing salary but how do I do it. Am I right do I have to register for payee for employers before drawing salary?

Please help with this because my company is active from three months and I have not received any salary will this be a problem in extension?

[bubbly123]

Hi

Thank you for your reply

So it is not mandatory to take salary? Because am the designer of my company and I have not started making any good money so is it okay to not to take salary? That's a good news !

But my accountant said I HAVE to receive salary as it is a limited company and not a sole proprietorship firm which caused me all the doubts. I would rather prefer not to receive any salary until I start making good money!

[entrepreneur123]

As a director you earn salary and as a shareholder dividend. You can vary your salary. For example in one month if your company earn good money say 1000 and in other month if not making good money say 500 or zero. So its really up to you. But as i said its good idea to put urself on paye as director.

Hi

Thank you for your reply

So it is not mandatory to take salary? Because am the designer of my company and I have not started making any good money so is it okay to not to take salary? That's a good news !

But my accountant said I HAVE to receive salary as it is a limited company and not a sole proprietorship firm which caused me all the doubts. I would rather prefer not to receive any salary until I start making good money!

[hham1224]

Being an accountant, I suggest you to take both salary and dividends. Salary to certain extend where there is no liability of NIC or income tax and rest as dividends. If you take more than the required amount as a salary then this will be very expensive option for you. You will end up paying income tax at 20%, employees NIC at 12% plus employers NIC at 13.8%.

Please note that the payroll system has been overhauled and one must need to run the payroll every week or a month to report the earnings to HMRC on or before the pay day [under RTI]. If you donot know how to run the payroll seek help from an accountant. There are strong penalties from this October if the submissions are late.

If you need my help on this and also other company compliance including annual statutory accounts, corporation tax computation and CT600 return and tax planning for your business, please call my number 020 8558 6999 or my mobile number 077 5851 3005.

I will also advise on the payroll where you are not required to pay any NIC or income tax but you will still be eligible for all the state benefits including state pensions. Please note that dividends are not relevant earnings for your pension contributions.

Regards