What PAYE Amount Should I Use From April 2018?

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MarkOnline
MarkOnline Posts: 19 Forumite
in Cutting tax
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 (17/18) I was inputting £679/month as my employee earnings as this was the maximum amount to use without having to pay tax - and also using tax code 1150L.

* 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 2018 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 1150L? I will need to input the new code in the Basic PAYE Tools program I use on my computer and HMRC never tell me what new code to use each year. Can someone tell me what code to use?

Pardon my ignorance on this and thanks for any help.

Mark
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  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
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    If HMRC dont supply you (as the employer) with a new tax code for you (the employee) then you should use the information in form P9X which HMRC should send you (as the employer).
  • ceh209
    ceh209 Posts: 876 Forumite
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    Try HMRC's website:

    https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2017-to-2018

    https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019
    Excuse any mis-spelt replies, there's probably a cat sat on the keyboard
  • silvercar
    silvercar Posts: 46,960 Ambassador
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    You want the primary threshold for NI. This year it is £680, next year it is £702.

    I don't know if there was a specific reason why you were at £679 rather than £680 and if this £1 difference indicates some other force in play.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • MarkOnline
    MarkOnline Posts: 19 Forumite
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    @SilverCar Yeah I had been advised last year, "For the year 2017/17, you can pay yourself £157 (£679 per month), without there being any deductions required."

    But £702 is what I needed to know :) Many thanks
  • MarkOnline
    MarkOnline Posts: 19 Forumite
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    Dazed_and_confused wrote: »
    If HMRC dont supply you (as the employer) with a new tax code for you (the employee) then you should use the information in form P9X which HMRC should send you (as the employer).

    I actually never received anything from them regarding the new code. It's always me asking people just like I'm doing now. All I know is that I'm using 1150L this year.
  • MarkOnline
    MarkOnline Posts: 19 Forumite
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    I think 1185L for this year's code? (add 35 to 1150L) Can anyone confirm? Thanks
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    edited 12 March 2018 at 3:33PM
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    "You" most likely wouldn't have received anything if your tax code was the basic "emergency" code number most people have.

    But your employer should have received a P9X. Not sure if this is sent via email or snail mail these days but they should have received one. This is the form which tells your employer how to upgrade certain tax codes at the changeover from one tax year to the next (where an individual coding notice hasn't been sent).

    https://www.gov.uk/government/publications/p9x-tax-codes
  • silvercar
    silvercar Posts: 46,960 Ambassador
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    MarkOnline wrote: »
    @SilverCar Yeah I had been advised last year, "For the year 2017/17, you can pay yourself £157 (£679 per month), without there being any deductions required."

    But £702 is what I needed to know :) Many thanks

    The google phrase is optimum directors salary 2018/19.

    Still slightly puzzled why you were told 679 not 680.

    There is the opportunity to utilise the NI Employment Allowance, but you can't use it if your are the only employee.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • MarkOnline
    MarkOnline Posts: 19 Forumite
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    silvercar wrote: »
    The google phrase is optimum directors salary 2018/19.

    Still slightly puzzled why you were told 679 not 680.

    There is the opportunity to utilise the NI Employment Allowance, but you can't use it if your are the only employee.

    Yes mate, I'm the sole employee. Thanks.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
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    It would be interesting if the op could check their National Insurance details and State Pension entitlement on their Personal Tax Account in a couple of months, will be interesting to know if 2017:18 is shown as a qualifying year?
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