No PAYE for Director in April?

Dabz_2

I've recently been made a Director of a ltd company and the MD has just commented in passing that as a Director I don't pay PAYE in April's wage. Apparently though the remaining 11 months of the year I'll pay slightly more than normal to make up for it. I can't find any info about this online so just wondering if anyone can shed any light on this? Doesn't seem like much of a perk if I bring home more in April but then bring home less for the rest of the year to make up for it!

Thanks

cfnc

nothing I have heard of and I do the payroll for a ltd company.
The only difference in the way a director is treated is in NI contributions, you pay slightly less throughout the year until about Feb March when it will go up. But that is only if that is how the payroll chose to do it, they could choose to treat you like all the other employees.
The only other thing I can think of is that the April pay is infact not pay but a directors dividend.

Kirsty

ceeforcat

Are you sure he is not talking about NIC and the director's table method where your salary is averaged each month?

For example, if you earn £3000 in first month, the method assumes earnings for the year at £250 per month and no NIC is paid. In second month another £3000 will bring average up to £500 per month and you would pay NIC due on £500 and multiply by 12 and so on!

Dabz_2

that could be it! I quizzed him again today and he said that I shouldn't pay NI for april and may until I pass the threshold of how much I've earnt...so you could be on to something Thanks