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Realtime PAYE

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    Realtime PAYE

    After spending my whole life as a permie, I have finally shed the ‘golden handcuffs’ and started working as a contractor; no major drama but I do have a few niggling questions:-
    I will be paying myself for the first time this month and had planned to pay myself £750 so as to draw undue HMRC attention to myself(my accountant is fine with this). Problem I can foresee is that one of the parameters I must supply to HMRC when running payroll is my hours. The minimum wage is currently £6.19 for my age group which would equate to £928.50 if I declared that I only work 37.5 hours a week. So, paying less than this amount would surely trigger suspicion ?
    What is peoples thinking on this ?

    #2
    Originally posted by Georgey48 View Post
    After spending my whole life as a permie, I have finally shed the ‘golden handcuffs’ and started working as a contractor; no major drama but I do have a few niggling questions:-
    I will be paying myself for the first time this month and had planned to pay myself £750 so as to draw undue HMRC attention to myself(my accountant is fine with this). Problem I can foresee is that one of the parameters I must supply to HMRC when running payroll is my hours. The minimum wage is currently £6.19 for my age group which would equate to £928.50 if I declared that I only work 37.5 hours a week. So, paying less than this amount would surely trigger suspicion ?
    What is peoples thinking on this ?
    you are a director working part time. Very different rules apply.
    merely at clientco for the entertainment

    Comment


      #3
      Originally posted by eek View Post
      you are a director working part time. Very different rules apply.
      Ah, I see. So theoretically, I could, for example submit that I’m working 10hrs a week and paying myself £18.75/hr ? The rest of the time I spending dreaming up new strategy or whatever directors do ?

      Many thanks for your reply

      Comment


        #4
        As I understand it, directors without a contract of employment don't need to follow NMW rules.

        Comment


          #5
          Originally posted by Maslins View Post
          As I understand it, directors without a contract of employment don't need to follow NMW rules.
          Hi Maslins,
          I'm probably being overly paranoid regarding the IR35 and tax obligation in general; it's nice to have it straight in my own head.

          Comment


            #6
            Originally posted by Maslins View Post
            As I understand it, directors without a contract of employment don't need to follow NMW rules.
            Concur...

            Of course, if your company is about to go to the wall, write yourself a contract quickly and dig in for the statutory redundancy claim

            Comment


              #7
              Originally posted by Georgey48 View Post
              Hi Maslins,
              I'm probably being overly paranoid regarding the IR35 and tax obligation in general; it's nice to have it straight in my own head.
              I think you need to read up on IR35. It's per contract, not how the director pays himself.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment

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