This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Ltd Company NI Contributions

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!

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.


James Smith
Chartered Accountant
01284 764436

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).

Return to “PAYE and Payroll Taxes, National Insurance, NICs”