I do the payroll for three connected companies and due to go in tomorrow to do the next lot. Ive just had a email from one of the Directors asking me to add him on to each Limited company's payroll and pay him £500. He has been on one for ages and claiming the usual below the threshold £641pm. I cant speak to him until 4pm tomorrow so just wondered if anyone had come across this and can this be done? If so - whhat tax code would I put him on? (He is currently on 944L) All a bit odd!!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Its weird that he would want to do that for tax reasons, but it may be down to the fact that there are other directors and so wage is the only way to go.... but as long as he is paying tax on the two other companies wages, having ticked box C, he can pretty much do what he likes if he has others agreement
Hi Michelle
He has just copied me in to the Accountant's email (although there was no mention of an amount on it!). He's not making much in the way of profits at the moment and has two other investors so the dividend route is not much of an option at the mo!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
