If you’re a director-owner of your own limited company though, you can pay yourself a regular salary with relative ease. The real question is how to do it in the most tax efficient manner.
There are various reasons why you may have paid more tax than you needed to for a tax year. For example, if you only worked at the start of the year, you may not have received all of your personal allowance.
The Chancellor’s 2015 March Budget was clearly aimed at winning the votes of savers and pensioners in the May General Election. The key points are highlighted in this post.
Currently, HM Revenue and Customs (HMRC) can collect tax debts of up to £3,000 by adjusting your Pay As You Earn (PAYE) tax code. HMRC refers to this as ‘coding out’. The effect of this is to recover the debt from your income, by increasing the amount deducted from your income during the tax year.
HMRC has announced that the introduction of automatic penalties for late RTI submissions will be delayed another five months for small employers.