PAYE Schemes and Salary Calculations

Every company that has any employees must register for a Pay as You Earn (PAYE) scheme. PAYE tax and National Insurance Contributions are deducted at source and paid over to HMRC.

PAYE contributions are paid over to HMRC quarterly or annually depending on which scheme you register for.

As the employee/director of your own Limited Company you create the option for yourself to choose how you get paid. Setting your salary at an optimum level and drawing tax free dividends or investing the retained earnings can have a massive impact on how much tax you pay and is therefore a very important aspect of managing your own Limited Company.

In the initial consultation with your accountant, 1st Contact ensures that you are made aware of the options and that the salary levels that you set are best suited to your requirements.

1st Contact also assists with the registration and management of your PAYE scheme, the associated payments to HMRC and Year End returns (P35 and P14 forms) which confirm the salary earned and PAYE and NI contributions made on behalf of the employee(s).

The Year End returns are statutory requirements and are the responsibility of the director.