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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Tax Code 1000L
Post Info TOPIC: Tax Code 1000L
NinaKoni


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Tax Code 1000L
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Hi all,

I have a director who is paying 2x£5000. On the first payslip there is not tax and NI. I don't understand why there is £165 tax due on the second one as his wage is under £10000 limit.

The code is 1000L and I use 12Pay.

Any help much appreciated.

 

Regards,

Nina

 

 



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Don Tax


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Hi Nina,

If you were to pay the director a £1 next month they should get it back. See if you can use the Tax Free Tables. If you're doing say February payroll then the director will be able to earn 10000 / 12 mths * 11 = £9167 tax free x 20% is £166.

The allowances are given month by month unlike the National insurance scheme for directors.

Kind regards,
Tim



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NinaKoni


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Hi Tim,

I got it now. If he doesn't want to pay Tax his wage should be 4166.67 this month.
He will be able to refund them trough his SA Return I hope.

Many thanks Tim.
I have just called HMRC and they didn't find an answer :)

Kind regards,
Nina

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Don Tax


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Just to add this salary is in the ballpark for considering National Insurance and paying him between 500 to 660 per month.

Tim



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