what is the best wat to pay myself with PAYE

samiam85

I formed a limited company july07.
(probalby i should i just gone self-employed but its done now so...)
I have yet to pay myself or register PAYE.
i have about £9000 to pay myself.

Ideally i would like to back date payment of ~5000 to pre april so i can use my tax free allowance.

Is paye the way to go?
I dont want to pay myself monthly as i dont have that sort of income in the business yet.
I would ideally like to pay myself a variable amount once a year.
what is the best way to go about this?
should i employ myself as "part time"?

should i then make up some hours and an hourly rate?

Is there a better way?
what if i dont want to pay myself next year?
what if i want to pay myslef again this year?

What is the best way to go about this?

Thanks so much for your time and help.

skintbutsmiling01

get an accountant, please!

LittleVoice

I agree with skintbutsmiling about getting help - however part of the answer is that you can't now decide to pay yourself £5K pre-April under PAYE. You have missed the boat on that one.

You can contact HMRC and get an employer's pack and start paying yourself what you want. Though it can vary from month to month, it would be better if you could work out a regular monthly sum and then pay yourself a bonus every six months or so. Have you worked out your cash flow for the coming year? (I think we know the answer to that one.)

Treading_Water

As previously stated it is now too late to pay pre April 08 income but as long as you are the sole shareholder in the company you can:-
register paye and pay yourself up to the Personal allowance for this year, plus a bit extra to take you over the lower limit for National insurance and then
declare any further payments as dividends.
If you have other shareholders then declaring dividends would mean including these shareholders, therefore all monies should be taken as wages.

Colin2511

if you ring the inalnd revenue they have courses for new employers that are free and really helpful, you need to make sure you do it all correctly

ukbill69

Get an accountant to do everything, works out better while you learn.