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• # 119164
• Tue 20 Oct 2020 12:48 PM

I'm looking for some help and avice regarding company directors pay.

I look after bookkeeping for three small limited companies.  The Director is the sole employee in each company.  All have been set up within the last six months.

Two directors have earnings above the LEL.  I am trying to convince these directors that they need to register as an employer and set up a PAYE scheme, with little luck.  I'm still trying.

The third director is taking only a small wage from the company at very irregular intervals.  Can this director continue to file their wages through Self-Assessment please?  

If the other two directors don't want to set up a PAYE scheme, can they continue to file through self-assessment?

Thank you.

Regards

Steve

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• # 119165
• Wed 21 Oct 2020 10:48 AM

Hello Steve,

As far as I understand it, as soon as the company pays any of the directors a wage that goes over the LEL threshold, then they will register for PAYE and report all wages through RTI, even if they are below the LEL threshold.

The directors can receive money from the company outside of payroll in the form of repayments of directors loans and/or dividends.

Torben

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• # 119168
• Thu 22 Oct 2020 10:54 AM

tedius said:

“

Hello Steve,

 

As far as I understand it, as soon as the company pays any of the directors a wage that goes over the LEL threshold, then they will register for PAYE and report all wages through RTI, even if they are below the LEL threshold.

 

The directors can receive money from the company outside of payroll in the form of repayments of directors loans and/or dividends.

 

Torben

”

 Torben

Thank you for your reply.  If the director is only paing themself a nominal amount of £50 a week it surely is not necessary to set up a PAYE scheme?  Can these small amounts of pay be paid off payroll and declared on self-assessment please?

Regards

Steve

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