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September 28, 2023
Solved

Zero Salary Director

  • September 28, 2023
  • 5 replies
  • 26 views

Hi - small company here and winding down (retiring)  I have 2 directors (me +wife) 2nd director still takes dividends but no salary - how do I remove her from Payroll and not mess up HMRC?

Best answer by JessT

Thanks - so even though we will not pay her and so not need to pay tax and NICS (as I said we are retiring and running the company down) I still need to keep her on Payroll to keep her as a Director (Dividends < £2k)?


Thank you for your reply, Dave.

 

I understand that your wife is also retiring. However, she needs to stay on payroll to keep her as a director. I would recommend reaching out to your tax agency about this, and then let us know if they have instructions about her status.

 

You can also reach out to our dedicated payroll support so they can check this for you. They are available during the usual business hours in the UK.

 

  1. Click on the Help and choose the Search bar.
  2. Choose Contact Us at the bottom.
  3. Enter a summary of your concern and click Continue.
  4. Choose Start a chat.

 

Feel free to reach back out if you have any other concerns. Take care and have a good one.

5 replies

Level 14
September 28, 2023

Hello DaveLaser, thanks for posting on the Community page, in order to help you with your query, can we ask which payroll it is you are using in your account is it our Standard payroll or our Advanced payroll? 

DaveLaserAuthor
September 30, 2023

Hi - thanks, it is standard (online).

Dave

JessT
JessTModeratorAnswer
Moderator
October 1, 2023

Thanks - so even though we will not pay her and so not need to pay tax and NICS (as I said we are retiring and running the company down) I still need to keep her on Payroll to keep her as a Director (Dividends < £2k)?


Thank you for your reply, Dave.

 

I understand that your wife is also retiring. However, she needs to stay on payroll to keep her as a director. I would recommend reaching out to your tax agency about this, and then let us know if they have instructions about her status.

 

You can also reach out to our dedicated payroll support so they can check this for you. They are available during the usual business hours in the UK.

 

  1. Click on the Help and choose the Search bar.
  2. Choose Contact Us at the bottom.
  3. Enter a summary of your concern and click Continue.
  4. Choose Start a chat.

 

Feel free to reach back out if you have any other concerns. Take care and have a good one.