PAYROLL FOR DIRECTORS
Whilst Directors of a Limited Company are also shareholders, they are an employee of the company rather than being considered ‘Self-Employed’, and can be paid via PAYE. Depending upon their circumstances, many Directors choose to receive salary up to either their non-taxable allowance, or the point at which Class 1 National Insurance would be deducted, and take the rest of their income as dividends.
There are differences with the way a Director’s National Insurance is calculated, and the best method can be chosen based on whether the Director will be paid regularly or intermittently.
Directors can choose to be paid either monthly, quarterly or annually and submissions made to HMRC need to reflect this.
PayrollAbility can manage Directors payroll, ensuring that the correct submissions are made to HMRC during the year if a Director is paid intermittently, ensuring trouble-free flexibility as your business grows.
Our comprehensive service includes:
- Standard payroll payment calculation and income tax and national insurance deduction.
- Electronic pay slips emailed to you.
- Completion of your monthly electronic return to HMRC.
- Reports for your records, which will be provided directly to you and a third party or accountant at your request.
- Confirmation of the amount to be paid to HMRC each month, and a reminder of the date that it’s due.
- Year End Process, including P60 emailed directly to you.
- Processing of year end with HMRC and a P45 emailed to you.
- Includes 1 hour of phone or admin support during each financial year.
- 14 day credit terms on each invoice
A Limited Company with only one Director is usaully exempt from Automatic Enrolment obligations, however we will help you determine whether you have Automatic Enrolment duties, and support you in ensuring you are complaint. If the Company appoints other Directors this may alter your Automatic Enrolment obligations, and any employees recruited who are not Directors will certainly alter your obligations. We can advise and support you through this process, from helping you to choose a pension provider and setting up the pension scheme, to ensuring your employees are provided with complaint and informative communication and administering the scheme each pay period.
We’d love to speak to you to learn a little about your business and discuss how we can help you. With Director Payroll starting at £28.86* per month a call to the office today on 01384 92 90 20 for a no-obligation discussion can give you time and peace of mind to focus on the business.
*Standard fee for 2022-23 tax year