Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi.The basic tax code for an individual who is under 65 years of age and has one job or PAYE source of income for 2012/13 is £810L. The personal allowance for 2012/13 is 8,105.If you haven't done so already, you should set up a PAYE scheme for your company which you can do online here. Strictly, until you receive tax codes yourself and your business partner, you should use an emergency tax code, 810L Week 1 or 810L Month 1. What that means is that you get 1/52nd or 1/12 of your personal allowance against each week or month's pay until you are each issued with regular 810L tax codes. The regular tax codes will give you the unused allowances from 6 April 2012 to the date they are first used so, depending on how much you are paying yourself, you may pay no tax for a while or get back some of the tax you overpaid while using a Week 1 or a Month tac code.Given that you have been out of the UK, you may receive a letter from the tax office asking you what you have been doing work wise since 2003 which should not be a problem for you. Let me know if you have any more questions or need clarification of any part of my answer.
Hi, Thank you for your answer. However, I did move back to the UK in 2010. As a small business, should I pay myself below my personal allowance to start with? My company is paying my childcare of £320 at the moment, should I include this in my pay or leave it as a separate allowance? Or do I just pay what is in our financial forecast, which is £1000 per month?
I hope I haven't asked too many questions!! :-)
Thank you so much for your advice.