Paying a salary through a Limited Company
How is a salary paid through a company?
This is the easy part, it’s simply a payment from the business bank account to the personal account of your employees. You need to make sure the payment that made is net of any taxes due (income tax and national insurance). The relevant PAYE returns will need to be made to HMRC showing salaries paid and tax deductions. This is in real time through the RTI PAYE system.
What level of salary should be taken?
This is a key decision and will always depend on a number of factors for example national living wage thresholds, what type of work is being performed by employees and if there are any formal contracts of employment.
How Aardvark Accounting can help you?
We can help you to get your head around your circumstances and simplify the jargon for you. Plus, we’re the best value for personal service and have tailored accountancy packages to suit you.
You’ll always have someone on hand to put your mind at ease from your financial business worries. Contact Aardvark Accounting today, we’ll do the “aard” work for you!
01425 471917 or contact us here
Note: All the information and advice in this blog post was correct at the time of writing.
