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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi I am just about to set up a company. I want to employ someone

Resolved Question:

Hi
I am just about to set up a company. I want to employ someone to set up a company where I will see dividend after April next year.
He wants to be paid £2,500 a month for the next 7 months as an employee.
His tax and Ni is about £820.44. The companies NI looks like it will be c£460 per month although it looks like I can get some relief on this.
What I need to know is when, or latest, I can hand over the tax part to HMRC as I don't have enough money to do this on a monthly basis but will have it at the end of April when money comes in from the company he is setting up?
Thank you
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
When you say hand over to HMRC you mean to collect the tax?
I assume this person will be PAYE?
Customer: replied 2 years ago.

I will set up the company and pay Joe Bloggs £2,500 a month net. I know then I have to pay his Tax and NI etc. but can I leave paying that until next April (when money starts to come in) or does it have to be paid month on month. I only have £20,000 to invest in the business and Joe wants to be PAYE, otherwise I would of made a company loan

Expert:  Ash replied 2 years ago.
Sadly no, if he is PAYE then you have to pay HMRC monthly.
They wont let you pay at the end of every April. This is because in effect you are taking the money at source and holding onto it for HMRC.
So they wont let you hold onto it until April as it is their money.
Sadly you will have to pay it monthly.
The only other option is that he is not PAYE and he submits his own tax return.
Can I clarify anything for you about this today please?
Alex
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