Payroll for Limited company Directors

BWMEA · ‎October 08, 2022

Hi there

I am one of two directors of a limited company that has recently been set up (construction industry). We were both self employed up until now. We have set up payroll and are planning to pay ourselves £1000 a week. As work has been slightly delayed, we have only been able to pay ourselves a tiny amount. When running payroll for the first time no tax/NI has been taken off. We assumed this is due to us not yet using our tax free amount and will be our first 'employed' job of the tax year? When we do a test run and put in over £12570 in income it starts to take NI/PAYE tax off which obviously makes sense. We are, however, a little worried that this is not correct due to starting part way through the year and therefore not having the full tax free amount?

Also when running a test payrun of £2000 for two weeks, again nothing is taken off in NI or tax which doesn't feel right.

Any help would be much appreciated!

LieraMarie_A · ‎October 08, 2022

Hi there, @BWMEA. I'm here to ensure you'll be able to correct your payroll.

I suggest checking the setup in your account to see if everything is correct. If so, you'll want to cross-reference your pay slip in QuickBooks with the HMRC Directors NI calculator as they should match exactly.

Otherwise, I recommend reaching out to our Customer Care Support team. This way, we'll be able to look into your account and payroll setup. Then, conduct an investigation to rectify the issue. Here's how:

Head to this link: Support.
Select which product is your question about and then its edition.
Enter a short description of your concern.
Hit Continue.
Select a way to connect with us.

I'm also adding these resources about NI calculation for the 2022 to 2023 tax year:

If I can be of any additional assistance, please don't hesitate to leave a comment below. I'll always have your back.

BWMEA · ‎October 09, 2022

Ok so from looking at the links it seems as we are directors we look at the entire tax year and not the specific pay periods. So as our income has yet to reach the limit for paying NI or tax that is why nothing is being taken off by quickbooks?

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Payroll for Limited company Directors

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