how to pay myself? please help :)

[tinatina]

I have been running my Ltd company for more than a year now and havent taken a wage. The first period of accounts end on 28/02/07. Could I pay myself salary of £5000 p. a. now for the first period of accounts? Do I need to register PAYE and pay NI or ENI on this? Or I just write myself a cheque?

Any suggestions appreciated.

Thanks a lot

[Joyous]

Assuming you have no other sources of income for the year you can pay yourself up to £5035 for 2006-07 without incurring any liability for PAYE. It’s advisable to register a PAYE scheme for the company and submit a nil return for 2006-07 to maintain your state pension entitlement. You'd better be quick though as the returns are due in by 19th May.

Your accountant should be able to talk you through this.

Regards

Joy

[tinatina]

thank you very much, Joyous!

so i will register PAYE, and submit a nil return asap as you advise me.

i suppose i can write myself a cheque and enter the amount as accual in the first period of account..??