What PAYE Amount Should I Use From April 2017? Thank You

MarkOnline

Hey guys, and let me say thank you upfront for any advice you can give.

I incorporated in 2011. I used to have my accountant do pretty much everything. (I am the sole employee and MD).

These days I am paying him less for a smaller service, and taking care of my own PAYE.

For this past year (16/17) I was inputting £671/month as my employee earnings as this was the maximum amount to use without having to pay tax - and also using tax code 1100L.

* And just to clarify, this is to avoid both income tax and employee NI contributions (not just income tax). *

So I'm just wondering from April 2017 what would the new amount be? To avoid income tax and employee NI (the rest of my income being issued as dividends).

Also, I'm sure I'll have to change my tax code change from 1100L? I will need to input the new code in the Basic PAYE Tools program I use on my computer. Can someone tell me what code to use?

I think HMRC are supposed to send me this code every year, but they never do, so I always have to find it online somehow.

Pardon my ignorance on this and thanks for any help

Mark

molerat

https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2017-18/tax-and-tax-credit-rates-and-thresholds-for-2017-18

TempUserName123

Hi,

It's not Tax that generally causes problems, but the National Insurance as the rates are much lower. For the year 2017/17, you can pay yourself £157 (£679 per month), without there being any deductions required.

I hope this helps

MarkOnline

@QuickRebates. Thank for that! So £679/month. Do you know what the code would be. Last year I was using 1100L.

Thanks again.

agrinnall

MarkOnline wrote: »

@QuickRebates. Thank for that! So £679/month. Do you know what the code would be. Last year I was using 1100L.

Thanks again.

Are you not capable of clicking on the link given to you by molerat? The answer is in that link, and of course the Chancellor stated it at least once in his budget speech yesterday so you could listen to that if you prefer.

molerat

An even easier one

https://www.rossmartin.co.uk/employers/essential-know-how/2564-what-is-the-2017-18-paye-tax-code

MarkOnline

An even easier one

https://www.rossmartin.co.uk/employers/essential-know-how/2564-what-is-the-2017-18-paye-tax-code

@molerat. That was very helpful. Just what I needed. Many thanks