Limited Company questions

annie12

My husband has set up a limited company, there is just him, so effectively he is director & employee. How does he pay his National Insurance, does he pay class 1, or 2 & possibly 4?

Murphy_The_Cat

annie12 wrote:

My husband has set up a limited company, there is just him, so effectively he is director & employee. How does he pay his National Insurance, does he pay class 1, or 2 & possibly 4?

Hi annie12 - contact your accountant and leave them to worry about it - let your hubby do what he does best.:j and leave carp like NI to the accountants.

MTC

Pennywise

annie12 wrote:

My husband has set up a limited company, there is just him, so effectively he is director & employee. How does he pay his National Insurance, does he pay class 1, or 2 & possibly 4?

Class 1 based on the wages paid to him by the company. Class 2 and 4 are only for self employed. I echo MTC's advice to let your accountant sort this out as payroll is quite complicated for the uninitiated - alternatively HMRC provide free training courses - you should have received details of local courses when you registered with them as an employer (I assume you have done that!).

annie12

Pennywise wrote:

HMRC provide free training courses - you should have received details of local courses when you registered with them as an employer (I assume you have done that!).

He hasn't registered yet as he's not received his P45 from his previous employer (he is signing a compromise agreement with the company).