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Where Taxpayers and Advisers Meet

Ltd Company NI Contributions

protipster
Posts: 1
Joined: Wed Aug 06, 2008 3:10 pm

Postby protipster » Mon Apr 26, 2004 12:38 pm

Hi there, I set up a Ltd company last year but it hasn't been making the money I expected it to and I am now running it as just a part-time venture while I work full-time elsewhere - I am the only person 'employed' by the Company but I haven't drawn a salary or anything from the account as yet.

As it is now coming up to the end of the first year's trading I am concerned about NI contributions. I spoke to the IR and I don't need to make any personal contributions but the booklet I was sent outlines two seperate sets of contributions: LTD Company AND Director.

What is the difference between the two and even though as a Director I don't need to contribute, do I need to make payments on behalf of the company itself? If so, how much?

Any help would be appreciated - just when I thought I had this cracked!

accountant@uktaxshop
Posts: 550
Joined: Wed Aug 06, 2008 3:04 pm

Postby accountant@uktaxshop » Mon Apr 26, 2004 12:47 pm

There is no NI to pay if you havenÂ’t paid a salary, although you will still need to make PAYE returns if you have registered for PAYE.

NI computations are slightly different for directors vs regular employees hence 2 booklets.

If you need some help getting everything in order for your year end, then please get in touch. I offer a very reasonably priced service for the small business to ensure you comply with all the legislation.

Regards,

James Smith
Chartered Accountant
www.jamesesmith.co.uk
01284 764436

funcrusherbill
Posts: 106
Joined: Wed Aug 06, 2008 3:10 pm

Postby funcrusherbill » Wed Apr 28, 2004 1:46 pm

No salary or taxable perks means no NIC or income tax, so in effect a nil return. The IR normally send out in feb / march a pre-printed Employers Annual Return form P35 to every employer in the PAYE system, and also separately piles of bumf. If you havn't received a P35, I would suggest you do nothing - but make sure when you do eventually draw a salary / perks you have PAYE set-up. If you have a P35, tick the boxes and also send in a P11(d)(b)(off the web site) confirming no perks (which would have to be detailed on a P11)(d).


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