Limited company director

questcars

Is it law if you are a director of a smallish limited company you have to be on PAYE my accountant says it is not and I am not and now getting no help

Jeremy535897

I think it used to be, but not for some time now.

unholyangel

No, it is not law for a director if you are not being paid salary (and perhaps are being paid in dividends instead). 

Grumpy_chap

A Ltd Co Director Owner does not have to be on PAYE so long as they do not draw a salary.  If it is all dividends, that is not PAYE.  In most cases, it is useful to draw at least some salary as PAYE to earn the NI stamp and take advantage of tax thresholds.

dunstonh

The advantage of salary (typically taken to the primary threshold if alone or secondary threshold if you have a larger number of employees) is that you get to qualify for having paid NI (i.e. getting a state pension) without actually paying any NI.   If you pay yourself in dividends only then you do not qualify as paying NI and you do not get a state pension qualification for that year.   

abovewater2016

In terms of getting no help, I’m in the same position as you unfortunately. I don’t know if you’ve tried but worth checking with your local council for a Discretionary Small Business Grant. Worth checking if you haven’t done already.