paying full years income in one go before tax year ends

[captainjon]

Hi,

I've just registered for PAYE this week, is it possible to make a full years payment now to make full use of the allowance, and then switch to the usual small monthly payments for next month?

thanks
Jon

[captainham]

Have you already received any PAYE salary in 2013/14 tax year (from your co or prev. perm employer)?

[captainham]

And do you have an accountant...?

[MarillionFan]

/

Hi,

I've just registered for PAYE this week, is it possible to make a full years payment now to make full use of the allowance, and then switch to the usual small monthly payments for next month?

thanks
Jon

What???

[Craig at Nixon Williams]

It is possible to make a larger payment now to make use of allowances – but bear in mind the following:

• You may have an NIC liability as a result of doing this if, especially if your company is new as the thresholds will be pro-rated according to how long you have been a director.
• Has the company made enough profit to afford the salary without creating a loss position?
• If you have (or have had) income from another source this year then you need to factor this in when deciding how much to pay to yourself.

Hope this helps!
Craig

[captainjon]

No previous PAYE this year, and as I understand the full income tax allowance is unused and available

[TheFaQQer]

No previous PAYE this year, and as I understand the full income tax allowance is unused and available

As Craig says, you'd need to watch for any NI that might become due if you are taking it as a lump sum.

What did your accountant suggest doing?

[Jessica@WhiteFieldTax]

There are too many nuances in terms of NI, other income in the year, protecting benefit entitlement, what next year holds for you, etc, for this to really be answered satisfactorily in a one line answer / on a public forum.

Take time to talk to your accountant and seek advice from someone with the whole picture.

Thats the type of area where a good accountant adds value.

[Jeremiah@RHJAccountants]

There are too many nuances in terms of NI, other income in the year, protecting benefit entitlement, what next year holds for you, etc, for this to really be answered satisfactorily in a one line answer / on a public forum.

Take time to talk to your accountant and seek advice from someone with the whole picture.

Thats the type of area where a good accountant adds value.

+1 A good accountant will advise you as they will know the whole picture.

That should be the OP first point of call.