Payroll query

webdigga

Hi,

I started my company in April this year.  I want to pay myself a salary of £12570.

I started payroll late in May and paid myself for May onwards on a monthly basis.  I did not pay myself a salary in April as I was waiting for things back from HMRC.

So at the end of this year I will end up paying myself £11522 (1 month short of the £12570)

I am probably being very stupid here, but is there any way I can legally pay myself that extra £1047.5.

I am using Primo Payroll, but once I setup my annual salary there I can only see the option to run payroll, but not make some one-off payment.

Woudl like to know if this is something that is possible or if I would be breaking some rules here?

Thanks!
David

DullGreyGuy

You could give yourself a bonus which your payroll software should be able to deal with

MattMattMattUK

webdigga said:

Hi,

I started my company in April this year.  I want to pay myself a salary of £12570.

I started payroll late in May and paid myself for May onwards on a monthly basis.  I did not pay myself a salary in April as I was waiting for things back from HMRC.

So at the end of this year I will end up paying myself £11522 (1 month short of the £12570)

I am probably being very stupid here, but is there any way I can legally pay myself that extra £1047.5.

Increase your monthly pay by that amount split over the remaining months, or pay yourself that amount as an additional sum in one month, probably as a bonus.

webdigga said:

I am using Primo Payroll, but once I setup my annual salary there I can only see the option to run payroll, but not make some one-off payment.

Not sure on Primo specifically as I do not use it, but somewhere within there will be the option to vary monthly, pay a bonus, alter salary etc. 

webdigga said:

Woudl like to know if this is something that is possible or if I would be breaking some rules here?

Thanks!
David

No rules about changing pay, so long as you keep the company solvent. 

webdigga

Great thank you both!

I'll take a look and see what I can do.  I guess changing my annual salary might be the easest (only because I have no idea how to pay a bonus in Primo would work)

And then I need to make sure I set this back to £12570 after last pay (March) has gone out

tacpot12

Don't forget that paying yourself a salary of exactly the personal allowance will mean that you are at the top of the list of small businesses that HMRC will investigate for tax compliance.

FFHillbilly

tacpot12 said:

Don't forget that paying yourself a salary of exactly the personal allowance will mean that you are at the top of the list of small businesses that HMRC will investigate for tax compliance.

tax evasion is perfectly legal, it's tax avoidance that HMRC will be interested in
tax avoidance is perfectly legal, it's tax evasion that HMRC will be interested in

Bookworm105

FFHillbilly said:

tacpot12 said:

Don't forget that paying yourself a salary of exactly the personal allowance will mean that you are at the top of the list of small businesses that HMRC will investigate for tax compliance.

tax evasion is perfectly legal, it's tax avoidance that HMRC will be interested in

actually it is precisely the opposite of what you wrote

Bookworm105

webdigga said:

Hi,

I started my company in April this year.  I want to pay myself a salary of £12570.

I started payroll late in May and paid myself for May onwards on a monthly basis.  I did not pay myself a salary in April as I was waiting for things back from HMRC.

So at the end of this year I will end up paying myself £11522 (1 month short of the £12570)

I am probably being very stupid here, but is there any way I can legally pay myself that extra £1047.5.

I am using Primo Payroll, but once I setup my annual salary there I can only see the option to run payroll, but not make some one-off payment.

Woudl like to know if this is something that is possible or if I would be breaking some rules here?

Thanks!
David

has your accountant advised you on the most tax efficient amount to use on payroll? 

For a Ltd with no employees and a single director/shareholder it isn't pay yourself 1/12th of the PA each month

shame you did not pay yourself at the rate PA/11 starting in May payroll. But having made that obvious mistake there is nothing now stopping you paying a bonus to catch up or simply giving yourself a pay rise for the remainder of the year equating to the annual value by tax year end.