Hi, any help gratefully received. Business up & running - ltd company. Have registered for corporation tax online HMRC (although unlikely to be taxed in first year as my initial predicted earnings very low). Do I need to register for NICs? I estimate to only make about £6k in my first year. Do I register for NICs at a later point? As my earnings will be so low, can I just take a little sum of money out each month from my business bank account and not really worry about anything else re. tax etc? Sorry for all the questions. Thanks
The company is a separate entity so you cannot just take money out as you like. You can either pay yourself a salary, in which case you need to be registered for PAYE with HMRC, or extract cash via dividends . Just taking money out would create a director's loan account on which both extra corporation tax and income tax may be payable. Please see an accountant who can advise you the best way to structure your payments and make sure you're not putting yourself at risk of penalties from HMRC (especially as PAYE reporting has changed this month).
Just spoken to HMRC who were very helpful - I've now registered for PAYE and will be sending in my Real Time Information via their system going forward. Was really surprised at how helpful they were - don't know what I was so scared about! Think the whole tax/paye side of my business just scared me and I didn't know where to start. Feel much better now! Just thought I'd post to let others know that HMRC are very helpful for new business start-ups.