I can help with book-keeping & payroll etc

Timmne

Just thought I'd pop in as OP isn't around at the moment....

You can pay your PAYE/NI over either monthly (if your total bill is >£1500 per month) or quarterly if it's less - due by 19th of the following month or for quarterly it's based on calendar quarters (Jan/Feb/Mar's PAYE/NI is due by 19th April).

Dividends can be paid at any point in the year nowadays, as long as the board minutes are in place and there are divi vouchers to support the dividend. You must also have the RETAINED profits in place to take a dividend - i.e. if you make £20k profit in year two, you cannot take a dividend if year one made a loss of =>£20k.

MickKnipfler

OK thanks. Do you send the NI/PAYE tax cheque off with the monthly voucher?

What about corp tax? Say my profit is £40k, can I then pay £20k into a SIPP then on the other £20k, pay £4k corp tax and £16k divi?

MickKnipfler

I have another question. If I use my own car and pay HMRC mileage rates (40p>25p) and my company is VAT registered, what's the equation for claiming a proportion of the VAT back on fuel receipts?

Timmne

Yep - send a cheque off with the slip from your yellow book. If you do it online though you'll save yourself money on the stamp and the bank charge for the cheque (always being MSE I am!!). If you pay by BACS you also have until 22nd of the month which is three extra days.

Your company can claim back the VAT on a proportion of the mileage - for example (and I can't find the rates anywhere on this so it will have to remain as an example I'm afraid!) I have a 1.2 renault clio and I claim 40p back per mile I do for business. 9p of this however my company can claim back the VAT on, so for every mile I do the company pays me 31p exempt of VAT, 7.66p Net of VAT and 1.34 VAT which can be reclaimed from HMRC. This is a little long winded but it makes sense if you think about it!!

I'm not sure what you mean on the SIPP thing - is this a personal investment or a company one? If it's a personal one then you'll have to take a dividend/salary to get the money out of the business first and then it's yours to spend.

MickKnipfler

OK, I'll check out the BACS (although Abbey cheques are free). Is that just tax or NI too?

So, essentially, for the first 10k miles, the business can claim 1.34p VAT relief? what about 10k+ miles at 25p?

The SIPP is a pension, isn't that corp tax free?


Thanks for your help..

Timmne

Yes, although I'm not sure what the rates are based on the car you're using; you'll have to check.

If the pension is corp tax allowable it will come off before the profit stage and therefore will reduce your corp tax payable.

Payments to the Revenue are made inclusive of tax and NI - they used to be split out 'in the old days' but now they're paid together....

Hope this helps!

MickKnipfler

Thanks. Let's say then that I pay myself £15kpa, that's £1250pm. How do I work out the tax and NI on that?

Also, my secretary: If I pay her £420pm, how do I work out her NI and tax if she is also a PAYE employee of another company? (She only does a few hours a week for them and is currently below the 10% band so I assume, only pays NI contributions)


Thanks again

ukbill69

hmrc do an employers cdrom that does the figures for you and can be ordered free on there website.

MickKnipfler

Thanks Bill, I'll check that out

grahamliza4

I should have mentioned I am expanding and have loads of new clients to sort at tho moment. All good though! But sadly it means I have 30 mins at end of every day to do stuff for me.

Good job Timnes around eh? Knows more than me!

Business + 2 kids + study = not half as much time as i think i have!