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Q. I am the sole employee of my company and I pay myself £100 per week. Does the company have to operate a PAYE scheme and report my wages under RTI to HMRC?
A. The company does not have to operate a PAYE scheme if none of its employees earn at least £123 per week, and none receive expenses or benefits or have another job or pension. However, the company must keep adequate payroll records so it can prove what has been paid as wages and when.
As an employee, you don't pay tax or national insurance contributions (NIC) on your wages under £175 per week, but if you are paid at least £123 per week you receive a NIC credit. This allows you to build up entitlement to the state pension and other state benefits.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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