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KateHes1
Level 2

Quickbooks registering too much tax for Director salary

Hi

 

I am just setting up my Quickbooks account, hvaing moved from another accountant.  I am a sole director and pay myself the £12,500 lower tax threshold and so shouldn't have to pay any tax on it and no NI until towards the end of my financial year.  However quickbooks payroll is immediately trying to deduct quite a lot of tax from my monthly payroll and I can't see why.  I am set up as a director in the payroll with the £12,500 salary so I am confused as to why.  Can you help? 

Solved
Best answer May 29, 2020

Accepted Solutions
KateHes1
Level 2

Quickbooks registering too much tax for Director salary

Hi Becky29.  Yes, I've double checked al of that.  It's still trying to take tax off me

View solution in original post

9 REPLIES 9
Ashleigh1
QuickBooks Team

Quickbooks registering too much tax for Director salary

Hello KateHes1, 

 

Welcome to the Community page, 

 

Can we ask which payroll it is you are using in Quickbooks is it Advanced or Standard? 

KateHes1
Level 2

Quickbooks registering too much tax for Director salary

Hi.  It's Quickbooks standard

 

Becky29
QuickBooks Team

Quickbooks registering too much tax for Director salary

Thanks KateHes1, Have you checked that the Year to date figures and tax codes, etc is correct? Becky

KateHes1
Level 2

Quickbooks registering too much tax for Director salary

Hi Becky29.  Yes, I've double checked al of that.  It's still trying to take tax off me

Becky29
QuickBooks Team

Quickbooks registering too much tax for Director salary

Okay katehes1, Thanks for getting back to us, We still need to check a few things to ensure set up correctly, Have you got the Director NI on or off? This is situated in the employee details section of the payroll. And do you have any figures in the payroll history? and what pay period is it that your running? Becky

STBooks
Level 1

Quickbooks registering too much tax for Director salary

I would love some help with this as well please, as i am doing the exact same thing, and am being taxed quite a bit. 

 

Many thanks in advance!

EmmaM
QuickBooks Team

Quickbooks registering too much tax for Director salary

Hello STBooks, Are you using standard payroll or advanced? What is the amount that is being deducted tax-wise? How much has been pay has been paid YTD?

STBooks
Level 1

Quickbooks registering too much tax for Director salary

Hi EmmaM, thanks for the reply. I'm using standard payroll. The amount of tax being deducted is £623.60.

This is the first payment in the tax year - so zero, and then this pay is for £12,500. Thanks.

MaryJoyD
QuickBooks Team

Quickbooks registering too much tax for Director salary

Thank you for getting back to us, @STBooks.

 

Please try to check if you have selected Employment Allowance in your account. You also need to enable this option to reduce the National Insurance Contribution (NIC’s) liability. You can do it from the Gear icon

 

Here's how:

  1. Go to the Gear icon and select Accounts and Settings.
  2. Find Payroll and select Employer NI relief section.
  3. If you qualify for Employment Allowance, select Yes.
  4. Click Yes if your business falls within the eligibility criteria for State Aid.
  5. Select the box that is most relevant to your business sector.
  6. Click on Save.

You can check this article for more information: Changes to Employment Allowance in 2020/21

 

I'm always here if you have follow-up questions. Take care and have a wonderful day!

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