Just opened my LTD, how to deal with paying myself? Just opened my LTD, how to deal with paying myself?
Posts 1 to 6 of 6
  1. #1

    Nervous Newbie

    LITSM has no reputation


    Join Date
    May 2018
    Posts
    4

    Default Just opened my LTD, how to deal with paying myself?

    I've finally taken the plunge and opened up own company. When it comes to paying myself I've read that it is best to pay yourself £8,164.00 per year so that you don't need to pay NIC but still get awarded the credits towards your state pension. However if I am to pay myself (it is only me working for the company currently) do I need to inform HMRC or anybody else? Or is it possible to simple take a monthly payment and show it in my accounting as "wages"?

    I already have a NI number and I was wondering how I should inform HMRC that my actual NI number is being paid.

  2. #2

    TPAFKAk2p2

    mudskipper is always on top

    mudskipper's Avatar
    Join Date
    Sep 2009
    Location
    Null island
    Posts
    26,083

    Default

    If you're starting out, and you don't understand the basics, then you really do need an accountant. The majority of contractors have one.

    If you're determined to DIY (and I don't even after 10 years) then google HMRC PAYE Tools

    Something like freeagent or quickbooks will go a long way to doing it for you, but you'll need to do a lot of reading to get the understanding behind it all.

    Get yourself an accountant

  3. #3

    My post count is Majestic

    northernladuk is always on top

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,799

    Default

    Get yourself an accountant.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

    Nervous Newbie

    Matt88 has no reputation


    Join Date
    Aug 2018
    Posts
    14

    Default

    Quote Originally Posted by LITSM View Post
    I've finally taken the plunge and opened up own company. When it comes to paying myself I've read that it is best to pay yourself £8,164.00 per year so that you don't need to pay NIC but still get awarded the credits towards your state pension. However if I am to pay myself (it is only me working for the company currently) do I need to inform HMRC or anybody else? Or is it possible to simple take a monthly payment and show it in my accounting as "wages"?

    I already have a NI number and I was wondering how I should inform HMRC that my actual NI number is being paid.
    I don't think it's that complicated. No way I'd hire an accountant. Just google it all.

    A lot of contractors seem to think what they do is the equivalent of painting the Sistine Chapel. But it's really not.

  5. #5

    Double Godlike!

    malvolio - scorchio!

    malvolio's Avatar
    Join Date
    Jul 2005
    Location
    Walking in the garden, dreaming of Olivia...
    Posts
    11,491

    Default

    Quote Originally Posted by Matt88 View Post
    I don't think it's that complicated. No way I'd hire an accountant. Just google it all.

    A lot of contractors seem to think what they do is the equivalent of painting the Sistine Chapel. But it's really not.
    Exactly. It's a piece of pl!ss. Until you get it wrong and write off a few thousands...

    Don't be a hero. Or a fool. Get an accountant
    Blog? What blog...?

  6. #6

    My post count is Majestic

    northernladuk is always on top

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,799

    Default

    Quote Originally Posted by Matt88 View Post
    I don't think it's that complicated. No way I'd hire an accountant. Just google it all.

    A lot of contractors seem to think what they do is the equivalent of painting the Sistine Chapel. But it's really not.
    Awful advice... But thanks.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •